Monday, November 19, 2018
The Internal Revenue Service announced today the official estate and gift tax limits for 2019, with the estate and gift tax exemption increased to $11.4 million per individual and the annual gift exclusion remaining the same at $15,000. Even if you are not ultra rich, the increase is a reminder that every person needs an appropriate estate plan.
There were only an estimated 1,890 taxable estates in 2018 after the Tax Cuts and Jobs Acts issued in by President Trump. This is a large increase from just a few years ago in 2013 when there was 4,687 taxable estates when the exemption was $5 million. The proponents of the increase are pushing for the increases to be permanent, while at the moment they are set to expire in 2025.
Palmer Schoening of the anti-death tax Family Business Coalition says that the ultimate goal would be a complete repeal of the estate tax, but permanency of the increases would make the transition easier. In the meantime, the wealthy will continue to plan around the estate tax, whittling down their estates with lifetime wealth transfer strategies to keep below the new threshold and avoid the 40% federal estate tax.
See Ashlea Ebeling, IRS Announces Higher 2019 Estate and Gift Tax Limits, Forbes, November 15, 2018.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.