A number of provisions of the Internal Revenue Code (“IRC” or “Code”) provide for annual adjustments to dollar amounts based on certain inflation criteria. Included among these is the lifetime exemption from estate, gift, and generation-skipping transfer taxes. For 2017, the lifetime exemption will be $5,490,000, which represents a $40,000 increase over the 2016 exemption amount of $5,450,000. The limitation for annual exclusion gifts will remain at its current level of $14,000.

The income tax brackets receive modest adjustments as well. Married individuals filing a joint return will not reach the maximum 39.6% income tax bracket until their taxable income is $470,700, compared to $466,950 for 2016. Single individuals will reach the highest tax bracket at taxable income of $418,700, compared to $415,050 for 2016.  Of course, this is all dependent on whether any changes to the income tax law are enacted by the new Congress.