We recently wrote a newsletter article on the current estate tax changes. In the article, we referenced the estate tax exemption amount as $11.2 million. At the time our newsletter went to print, there was not a lot of information regarding the new tax law, other than it had been signed.
However, as we have received more information regarding the new tax law, it appears the estate tax exemption amount is $11.18 million. You may be asking yourself why is there any discrepancy? What we know about the new law is it doubled the estate tax exemption amount from $5 million to $10 million. We also know it is adjusted for inflation. The discrepancy comes in when calculating the indexing for inflation. As a result of change in indexing for inflation, many experts reflect the estate tax exemption amount to be $11.18 million.
Although this doesn’t impact too many of us, it is an example of how things are continuing to change as a result of the new tax laws.
If you have your Estate Plan in order, now is the time to review it in light of the new tax law. There have been a lot of changes that could impact you. In fact, a lot of these still aren’t clear. We receive updated information almost daily.