The lifetime gift and estate tax exemption is scheduled to increase from $12.06mm in 2022 to $12.92mm per person for 2023. This is an increase of $860,000. The annual gift tax exclusion (i.e., present-interest gifts can be made up to $17,000 to or for the benefit of an unlimited number of individuals) which is an increase from $16,000 in 2022. If married, an individual and their spouse can gift-split to make annual exclusion gifts of up to $34,000 without applying the lifetime gift and estate tax exemptions, and will have a combined lifetime gift and estate tax exemption of $25.84mm.
For non-U.S. citizen spouses, the annual exclusion for inter-spousal gifts will increase to $175,000 in 2023 from $164,000 in 2022. Gifts between spouses who are both U.S. citizens are generally unlimited.
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These threshold amounts will go into effect for gift and estate tax purposes on January. 1, 2023.