It’s official—for 2016, the estate and gift tax exemption is $5.45 million per individual, up from $5.43 million in 2015. That means an individual can leave $5.45 million to heirs and pay no federal estate or gift tax. A married couple will be able to shield $10.9 million from federal estate and gift taxes. The annual gift exclusion remains the same at $14,000.
The federal estate and gift tax exemptions rise with inflation, and the IRS announced the new numbers here. We cover the 2016 retirement plan contribution limits here and the new numbers for individual income tax provisions for 2016 here.