Banner image

2023 Tax Exemptions Are Largest Exemption Increases Ever

2023 tax exemptions are largest exemption increases ever
News & Blog Oct 26, 2022

IRS – Annual Gifting Exclusion

The IRS just announced that the annual gifting exclusion amount – each person can pass to family per year without reporting it to the IRS on either side of the transaction – just shot up from $16,000 to $17,000.

The estate taxation threshold is going to be $12,900,000, up from $12,060,000 in 2022.

This is meaningful for those who have large estates and need to at least engage in estate freezing techniques. It is also meaningful for those who have previously capped out their lifetime gifting amount, who can now take a second bite at the apple. Anyone in this position should be consulting with their estate planning attorney in the coming months given that the current estate tax exemption, no matter how much its adjusted for inflation in 2024 and 2025, is set to expire and roll back down to $5,000,000. That number will also be adjusted to inflation but people should expect the exemption to be about 50% of what it currently is. And, with inflation and the strong dollar continuing, the problem could be compounded.

Annual Gifting Exclusion of $17,000

Keep in mind that a couple could each give $17,000 to each of their children, spouses of children and grandchildren. In an average family, that could mean moving hundreds of thousands of dollars without reporting it or using your lifetime gift exemption. That is excellent news for those who have accumulated enough wealth for their needs and may be focusing more on helping out next generations. The amount of wealth that can be transferred over a decade using this simple annual gifting exclusion is well over $1,000,000. Furthermore, all of the growth of the transferred wealth is out of the taxable estate of the giving generation. If this is timed right, for a mother and father who want to help their daughter, married, with three children, the parents could each pass $85,000 totaling $170,000 under the annual exclusion. They could make this gift in December and then a similar gifting in January of the next year totaling $340,000 of gifting in one week without even having to file a 709 Return with the IRS. These gifts do not have to be cash and they do not have to be directly to family, but could be gifts to trusts for family members, depending on the circumstances and the particular trust’s terms.

Estate Tax Exemption of $12,900,000

In short, this is not only the largest increase, but this is the largest exemption in history, save the one year there was no exemption cap. From 2022 to 2023 the exemption increased by $840,000. This may be one of the few benefits of the inflation spiral our country has experienced. Admittedly, this number helps the wealthy. But this large exemption helps those who may have taxable “paper” wealth and not millions sitting in the bank and brokerage accounts. Regardless of whether wealth is intangible, tied up in real property assets, or in easy to access accounts, it is all taxable according to the IRS. Now, with the increased exemption families with valuable family businesses, etc. can be taken off their balance sheets during their lifetimes and placed in the hands of a trustee or other family member. At the very least, this prevents any increase in wealth that will only increase the amount taxed at death, keeping in mind the estate tax is 40% of every penny above the exemption amount. Clients should also note that the exemption will be deceased by approximately 50% after 2025. The rare opportunity for planning can be demonstrated by this simple contrast:

In 2023, single Mr. X dies with $14,000,000 of assets. His family will pay $440,000 of estate tax by the time they file the 706 Estate Tax Return.

In 2026, single Mr. X does with the same sum in his estate. But, utilizing a likely exemption amount of $6,200,000 by adjusting for inflation, his family will pay $3,120,000.

Based on this contrast, I’d suggest Mr. X utilize some of his estate to hire bodyguards to ensure his heirs don’t expedite his exit prior to the expiration of the higher exemption on 12/31/25. Or, he could just engage the services of a well-seasoned estate tax planning specialist in the coming months to take advantage of the large exemption before its expiration.


Ms. Minto has been a business and estates transactional attorney based in California since 2003. Her practice is now located in Tustin, CA but represents individuals and entities based throughout the United States and abroad. Phone: (949) 253-0000, Email:


  • NM Law is an excellent law firm to work with! Noelle and her team are very thorough and knowledgeable. They explained the estate planning process to us and kept us informed every step of the way. We…

    Monique S
  • I greatly appreciate Noelle’s assistance in making difficult decisions. When she provides counsel I know she puts herself and her family in my shoes. I feel comfortable knowing my attorney has analyzed every angle and leaves out…

    Cinda H.
  • For those of you that are looking for the perfect attorney to handle any of your estate issues, well Noelle is the one for you! I can’t say enough about Noelle! She recently handled a case for…

    Suzie F.
  • One of the most important things you can do for your family is have a good Living Trust done by an attorney you can trust to take care of your business. I highly recommend Noelle Minto, an…

    Sandy Z.
  • Working with Noelle on litigation and transactional matters was truly a valuable experience for me. Not only was she a great communicator with clients and personnel, but zealous and passionate about her clients. I would recommend her…

    Darren S.
  • I’ve known Noelle as a colleague and friend for close to seven years. Working “across the aisle” in the fast-paced and partisan world of LA County politics, I found Noelle remarkable for her ability to quickly grasp…

    Kerjon L.
  • Noelle and her team were professional, courteous and diligent with my case. It was a small matter but they took it as though it was a large one. They reached a settlement quickly and very little effort…

    Doug S.
  • After my mother’s death, The bank locked all her accounts and the insurance company was playing games. Our family lawyer never call me back. I called Noelle for help! My paper work was not in order at…

    Randy B.
  • Noelle is awesome. Handled everything I needed in a timely manner. Very professional!

    Tammy W.
  • I have worked with Noelle on my Estate Planning and was very impressed by the way she handled my business. Noelle was extremely professional and available for all my questions. I would highly recommend anyone looking for…

    Zac C.
  • I have worked with many attorneys, and there are very few that I would ever recommend. Noelle and her team have gone above and beyond to help all of our clients that we have referred to her….

    Robert Sousa
  • I was first referred to Noelle Minto by my family law attorney Mike Monarch to provide oversight on my husband’s Trust conforming with our Post Marital Agreement. Her outstanding legal insights helped me to feel secure that…

    Sharon McCubbin
  • Noelle and Samantha and their team are amazing. They are extremely knowledgeable and professional (they are the best). They have and continue to support me and my family while dealing with my parents Will and Trust. Samantha…

    Greg Bishop
  • I had a great experience with Noelle and Samantha at NM Law. They were fast, clear and got the result we wanted under budget. I am very happy and impressed.

    John Arens
  • NM Law is an exceptional place to work! Our office is located in the City of Tustin, off the 55 Freeway, between the 5 and 405 Freeways. Our main cross streets are Redhill Avenue and Edinger Avenue…

    Samantha Smith
  • The N.W Law team in Tustin Ca was instrumental in achieving a just result in our family trust dispute. We had the privilege of being represented by Samantha Smith and her staff, during one of my saddest…

    Herman baldonado
  • Amazing service. So happy with the whole team!

    Mitchell Hilde
  • So glad to work with this team of professionals

    Noelle Minto
  • As an attorney who has used two other wills & trusts lawyers prior to seeing Noelle, I have a pretty good idea of what to expect and what it should cost. I recommend Noelle to anyone who…

    Lynne Boisineau
  • Highly recommend NM Law. I recently worked with Noelle and her team on my family trust and the process could not have gone smoother. Very knowledgeable and professional. I have since recommended all of my family members…

    Nathan Perkins
  • A very professional approach and action to fulfill our personal requirements

    Waldo ortega
  • My husband and I decided to update our 12 year old trust. We initally had a call with Noelle, and were instantly very comfortable with her approach. Noelle was great to work with, very patient, was willing…

    Cheri Ondatje
  • Vey helpful with good insight to take the proper steps with difficult situations and have my questions answered. Noelle and her team are professional and courteous and great to work with!

    Corine Cojocaru
  • Samantha and the team are professional compassionate and get the job done. She articulates very well what needs to be done. Her and the firm do Probate and Trust at its finest to protect their clients. She…

    Silvana Sarkis
  • I was referred to NM Law after dealing with a myriad of problems in settling a complicated Trust in Riverside County. At the initial meeting, Noelle Minto and Samantha Smith listened to the mess I was in…

    Aleathea Rayburn
  • Love this firm. I’ve worked on a wide range of legal issues with NM law, and the attorneys here are top notch, reasonably priced, and a pleasure to work with. They truly care about each of their…

  • Ms. Minto, I want to thank you and your staff for the courtesy extended to us during our family’s pending emergency deadline. Mr. O’Grady spoke to my brother and gave us his best recommendation regarding my father’s…

    Abraham Torres

Charities We Support

We dedicate pro bono time, volunteer services, and a percentage of our gross revenue to these organizations. In 2023, we sponsored a refugee family of five to come to the United States and start a new life.

Each year our law firm decides as a group which charities to assist with our time, money, and expertise. Please feel free to click on any of the charities below and make a donation of your own.

  • Charities
  • Charities
  • Charities
  • Charities
  • Charities
  • Charities