It’s Not Too Early to Start Planning for January 2022 Gifts by Jeffrey M. Mutnik, CPA/PFS

Posted on December 16, 2021 by Jeffrey Mutnik

The IRS recently released the inflation-adjusted estate and gift exemptions for 2022, which provide families with enhanced opportunities to transfer significantly more assets to younger generations tax-free. However, families must consider these adjustments within the context of potential tax reform in the year ahead.

For tax year 2022, the lifetime estate-tax exemption jumps $360,000 to $12.06 million, while the annual gift tax exclusion rises for the first time in four years to $16,000. These increases should reinforce estate-planning decisions families made during the past few months of uncertainty, including any transfers of appreciated assets outside of individuals’ taxable estates. In fact, these inflation adjustments should encourage taxpayers to even expand on their existing estate-planning strategies by making additional gifts to loved ones during their lifetimes. The resulting tax efficiency will ultimately reduce exposure to potential tax liabilities in the future and increase protection from creditors, especially when gifts are made to a trust for the benefit of named beneficiaries.

About the Author: Jeffrey M. Mutnik, CPA/PFS, is a director of Taxation and Financial Services with Berkowitz Pollack Brant Advisors + CPAs, where he provides tax- and estate-planning counsel to high-net-worth families, closely held businesses and professional services firms. He can be reached at the CPA firm’s Ft. Lauderdale, Fla., office at (954) 712-7000 or via email at