A number of changes with regard to estate planning issues went into effect on January 1, 2023. Gift tax exclusion, which was $16,000 in 2022, is now $17,000. Each person may give up to $17,000 to as many people as they want without federal gift tax liability. This also does not use any part of the federal estate tax exemption.
The new federal state tax exemption is $12,920. This is due to the adjustment for inflation. New York estate tax exemption is now $6,580.
Medicaid Changes
An individual who needs medical or nursing care either at home or in a nursing facility may keep up to $28,133 in assets. If there’s one spouse in the home and the other spouse is in a nursing home, the spouse at home may keep up to $150,000 in assets. The value of a home up to a $1,033,000 is exempt from Medicaid if a spouse is living there while the other spouses in a facility.
The age at which an individual must take their IRA exemption minimum distribution has been raised from 72 to 73.
Schlissel DeCorpo, LLP have been helping clients with Estate Planning, Medicaid Planning and representation on Estate matters for more than 45 years. We can be reached at elliot@sdnylaw.com, and at 516-561-6645, 631-319-8262 or 718-350-2802. Call for a free consultation.
