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Uncovering The 2024 Lifetime Exemption Amount: What You Need To Know From The IRS
Amount Uncovering The 2024 Lifetime Exemption Amount: What You Need To Know From The IRS

Legal Update: November 2023

November 2023 has brought⁣ a wave of legal developments in the fields of estate planning, elder law,⁣ and business law. From ⁤the IRS’s new guidelines for 2024 ⁢to Social Security adjustments and ‌modifications⁢ in the Corporate Transparency Act, legal practitioners must stay⁤ up-to-date with the latest changes. ⁣To help you do just that, we’ve compiled the most⁤ important updates below.

Estate Planning

The IRS⁤ has revised‌ the tax provisions for 2024, offering individuals and couples greater​ flexibility in‍ tax-free transfers. Significant changes include:

Exemption/Gift AmountAmount
Estate and Gift Tax Exemption$13,610,000
Annual Gift Exclusion$18,000
Gifts to Non-Citizen SpouseExclude the first $185,000 from taxable ‍gifts

Massachusetts has also increased its estate tax exemption‌ to $2 million, effective retroactively from January 1, 2023. This change‌ reduces the tax burden on estates just above the‌ previous $1 million threshold, and estate representatives may seek refunds or extensions based on this new‍ exemption amount.

California has enacted ⁤the ‌Uniform Directed Trust Act, defining the roles of trust ⁣directors⁤ and trustees in trust administration. This act provides a legal ⁣framework ‌for using trust directors, offering more ⁣flexibility in⁤ trust management.

Elder Law and Special Needs Law

The Social Security Administration announced a 3.2% COLA ​for 2024, affecting both Social ⁣Security and SSI beneficiaries. Though smaller than in 2023, this adjustment will assist those ⁣on fixed incomes to counteract inflation.

Business Law

The Treasury Department has issued a final rule for the use of FinCEN identifiers, simplifying reporting for business entities under the Corporate Transparency Act. This eases the administrative burden for businesses required to file multiple reports.

The IRS has introduced ⁣a withdrawal⁢ process for employers who have filed for the Employee Retention Credit ⁣under duress, allowing them ‍to⁢ avoid penalties for ineligible ⁢claims. ⁤This offers relief to employers who filed ineligible claims due to external pressure.

California has passed several laws enhancing employee rights, including increased paid sick leave and⁢ regulations against⁢ noncompete agreements. Employers must adapt to these changes,⁢ ensuring compliance and⁣ providing necessary notices to employees.