Thursday, December 28, 2017

Estate Planning Updates for 2018

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.