Do you know the Estate and Gift Tax Exemptions for 2018?
Do you know the Estate and Gift Tax Exemptions for 2018?
Do you know the new Annual Exclusion for 2018?
The annual exclusion amount will be increased to $15,000 from $14,000 on January 1, 2018. It has been $ 14,000 since 2013. This is the amount that each person can give to another person without using any of their gift and estate tax exemption. Payments of tuition to schools and medical expenses to health care providers remain without limitation.
Also, gifts to spouses who are United States citizens are not subject to gift tax. For gifts to spouses who are not U.S citizens, the annual exclusion amount increased to $152,000 from $149,000.
Also in 2018, the estate and gift tax “exemption” will be $5,600,000, up from the current $5,490,000. This is the total amount that can pass free from estate tax on death and/or from gift tax during life.
The same exemption amount is used for generation-skipping transfer taxes which allow parents to create trusts for children and future generations that avoid estate tax at all generations.
The above adjustments were part of the IRS Revenue Procedure 2017-58, which was published on November 6, 2017.
November 7, 2017
Steven W. Tarta, Esq. brings more than 45 years of professional experience to his practice, with a sophisticated focus on Estate Tax Planning, Living Trusts and Elder Law.