2020 Inflation Adjustments

Each year, certain federal gift, estate and generation-skipping transfer (GST) tax figures are subject to inflation adjustments:

• For 2020, the annual exclusion amount for gifts remains at $15,000.
• For 2020, the federal gift, estate and GST tax exemption amount increases to $11,580,000 (from $11,400,000 in 2019).
• For 2020, the annual exclusion amount for gifts made to a noncitizen spouse increases to $157,000 (from $155,000).

There are changes to exemptions in two of our footprint states as well:

• For 2020, the Connecticut gift and estate tax exemption increases to $5,100,000 (from $3,600,000)
• Further information on changes to the Connecticut exemption can be found in our Summer 2019 Update article, " Connecticut Increases Gift and Estate Tax Exemption Amounts."