Each year, the IRS announces how much the estate and gift tax exemptions will be for the following year. Recently, the announcement was made that the estate tax exemption will rise to $5.43 million per person, and the annual gift tax exemption remains at $14,000 for 2015. The $90,000 increase could allow a New Jersey resident to do more gifting during his or her lifetime.
This is because the amount of every gift needs to be deducted from the total amount of the exemption. For instance, if a person has not made any gifts up to this point, he or she could give away up to $5.43 million next year, and no taxes would be due for the one making the gift. A married couple can combine each party's exemption and give away up to $10.86 million.