The IRS has announced the 2014 inflation adjustments to various Internal Revenue Code provisions. Of particular importance for estate planning is the increase of the basic exclusion amount (the amount which an individual can shield from estate and gift tax) to $5,340,000 from $5,250,000 in 2013. The generation-skipping transfer tax (GST) exemption is likewise increased to $5,340,000. The annual exclusion from gift tax remains at $14,000.

In addition, the Rhode Island Division of Taxation recently announced an inflation-adjusted increase of the Rhode Island estate tax exemption amount to $921,655 for 2014, up from $910,725 in 2013. The Massachusetts estate tax exemption remains at $1,000,000.