As of January 1, 2018, a new tax law was put into place. With this new law, the Estate Tax Exemption amount has been raised from $5.49 million per person to a whopping $11.2 million per person. This means that the first $11.2 million dollars of property a person owns at death is exempt from estate taxes.
What other changes have taken place?
The Annual Gift Tax Exclusion has been raised to $15,000 this year. That means that a person can give a gift of $15,000 each year to as many persons as they choose without having to pay a gift tax or report it on their tax return.
What to expect going forward
Tax laws have the ability to change from year to year. We can only plan the best we can based on the current year’s tax laws. This is why it’s so important to review your estate planning documents each year to make sure that you do not have an estate tax issue.
Stayed tuned for additional changes posted to our blog as we comb through the new tax law.