Under the new tax law far fewer estates will be subject to the estate tax. The Tax Cut and Jobs Act more than doubles the combined gift and estate tax exemption and generation skipping transfer tax exemption to $11.18 million for 2018. For married couples it is twice that to $22.36 million. The annual gift tax exclusion for 2018 is $15,000. As the increased exemption is set to expire in 2025 without action by Congress, taxpayers who could be subject to gift and estate taxes after 2025 should consider making gifts now to utilize the higher exemptions while they are available. Please feel free to contact us to discuss potential impacts to your estate and gift tax planning.
