With the release of the Chained Consumer Price Index (C-CPI-U) for August 2022, it’s possible to calculate various inflation adjustments for 2023. The following are the significant federal estate planning numbers, with the numbers for 2022 shown in parentheses:

• The federal estate tax base applicable exclusion amount (and generation-skipping tax exemption) will be $12,920,000 (was $12,060,000 for 2022).
• The annual gift tax exclusion will be $17,000 (was $16,000).
• The annual gift tax exclusion for a non-citizen spouse will be $175,000 (was $164,000).
• The “2 percent” amount for purposes of section 6166 will be $1,750,000 (was $1,640,000).
• The limitation on the special use valuation reduction under section 2032A will be $1,310,000 (was $1,230,000).
• The top (37%) income tax bracket for estates and trusts will begin at $14,450 (was $13,450).
• The alternative minimum tax exemption for estates and trusts will be $28,400 (was $26,500), and the phaseout of the exemption will start at $94,600 (was $88,300).

The Internal Revenue Service will publish the official inflation adjustments in a Revenue Procedure that will probably appear in 4-8 weeks.