Estate & Gift Tax 2023 update

The basic exclusion amount from Federal Estate Tax for decedents dying in 2023 has been increased to $12,920,000 per individual ($25,840,000 available per married couple). This amount will continue to be adjusted annually for inflation until January 1, 2026 when the amount will revert to pre 2018 level of $5,490,000 adjusted for inflation. The annual exclusion amount for gifts increased to $17,000 per donee per year as of 2023. 

Portability of Exemption from Estate Tax.
The surviving spouse of a decedent who does not use his or her unified credit for Estate Tax may file a Federal Estate Tax Return electing portability of the unused unified credit which will add the unused amount to the survivor's unified credit (currently $12,920,000 for deaths in 2023). Executors may file a late estate tax return to elect portability of the deceased spouse's unused unified credit according to seven private letter rulings by the IRS.

This can be filed without obtaining a private letter ruling, if: the executor files a complete estate tax return within two years of the decedent’s death; the gross estate was less than the filing threshold; the executor did not file a timely estate tax return; and several other prerequisites are met. This allows late election of portability which could increase a surviving spouse's exemption from federal estate tax by $12.92 million dollars for deaths occurring in 2023.