THE THRESHOLD FOR federal estate taxes is increasing for 2023. As a reminder, the IRS states that an estate tax is “a tax on your right to transfer property at your death. It consists of an accounting of everything you own or have certain interests in at the date of death” (tinyurl.com/emrfa5jv).
According to the IRS, the estates of those who die in 2023 will have a basic exclusion amount (BEA) of $12.92 million (also known as the filing threshold). That means those estates whose value is below $12.92 million are free from estate taxes. The BEA is up from $12.06 million for deaths occurring in calendar year 2022.