Below are some of the recent highlights regarding
estate planning changes that have recently been implemented.
Estate Tax Exemption: Prior to the recent tax bill, the
estate tax regime provided for an estate tax exemption of $5 million, which was
adjusted annually. The adjusted exemption for 2017 was $5,490,000. However, the
new tax bill doubles the adjusted exemption for 2018 to $11,200,000.
Additionally, one of the most beneficial items in
the tax code is the annual gift exclusion. The adjusted figure was 2017 is
$14,000 per beneficiary, which had not been raised since the beginning of 2013.
However, for 2018, the IRS has announced that such exclusion will be adjusted
to $15,000, per beneficiary.
As a final note, I would like to address the Proposed
2704 Regulations for the final times. As a quick background, toward the end of
2016, the Treasury Department proposed regulations
that sought to eliminate traditional (and significant) discounts for estate tax
purposes available to family controlled entities. As expected, It was recently
announced that the current administration will now proceed with the proposed
regulations.
