California Estate Planning Blog by Kevin Staker

October 20, 2017

IRS Announces Increased Estate and Gift Tax Exemptions and Increased Annual Gift Tax Exclusion for 2018 – By Kevin Staker

Filed under: estate tax,estate tax news,Kevin Staker — Kevin Staker @ 8:32 am
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The Internal Revenue Service has announced adjustments for inflation in the estate/gift tax exemption and the annual gift tax exclusion for 2018.  In IRS press release IR-2017-178, released on Oct. 19, 2017, announced a number of adjustments for inflation.  The press release can be found at https://www.irs.gov/newsroom/in-2018-some-tax-benefits-increase-slightly-due-to-inflation-adjustments-others-unchanged.

Two of the adjustments are important for estate tax planning.

The figure for the estate tax exemption, the gift tax exemption, and the generation-skipping transfer tax exemption will be increased from $5,490,000 in 2017 to $5,600,000 in 2018.  Hence, a couple can pass along a total of $11,200,000 in assets to individuals without incurring any death tax.  A couple can do this using what is commonly called an “A-B Trust” or just relying on what is called estate tax portability.

By Kevin Staker