IRS Announces Estate and Gift Tax Exemptions for 2018 by Kevin Staker

IRS Announces Estate and Gift Tax Exemptions for 2018

The IRS has announced the estate and gift tax exemptions for 2018.  In Revenue Procedure 2018-18, the IRS announced the exemptions will be $11,180,000.  The Revenue Procedure is part of Internal Revenue Bulletin 2018-10, released on March 5, 2018.  Kevin Staker states that the IRB may be found at https://www.irs.gov/irb/2018-10_IRB#RP-2018-18.

Therefore, Kevin Staker shares that a married couple can now shelter at least $22,360,000 from estate tax through the use of bypass trusts, estate tax exemption portability, gifts, and other estate tax planning devices.

However, if the law does not change, in 2025, we will go back to a $5,600,000 exemption adjusted for inflation.

You are advised to see your estate planning attorney to get proper advice on this issue.  In particular, if you are a married couple, all your children are of this marriage, and your total estate between the two of you is under $5,600,000, you should have a “simple” trust.   A simple trust remains as one trust at the death of the deceased spouse.

By Kevin Staker