Happy New Year – 2019 Estate & Gift Tax

Happy New Year!

Now, time to talk taxes!  The 2019 tax changes are:

  • The Estate and Gift tax exemption rate is increased (adjusted for inflation) to $11.4 Million per individual in 2019.  This is an increase from $11.18 Million per individual in 2018.
  • Planning together, in 2019, married couples can transfer a total of $22.8 Million in inheritance or gifts without paying gift or estate tax (subject to prior use of the credit).
  • The annual gift exclusion amount is unchanged from 2018.  It remains at $15,000.

Remember, the tax law that ushered in these increased Federal Estate Tax exemption amounts expires at the end of 2025.  Talk with your accountant or attorney to see if you could benefit from taking steps before 2026 to utilize the tax exemption.

Tax Updates for 2017

Happy New Year!  Tax updates for the new year:

  • The Federal Estate Tax exemption amount has increased to $5.49 million per person.  With portability, this means a married couple can collectively transfer just less than $11 Million ($10.98 Mill to be precise).
  • The annual gift tax exclusion amount remains at $14,000 per person.  For a married couple, they can each make a gift of $14,000 to the same individual, providing for a total gift of $28,000 to that person.