On December 22, 2017 President Trump signed the Tax Cut and Jobs Act (TCJA)
into law. The new law makes modifications to the income and estate tax system.
Allowed exemptions from federal estate tax:
2017 – $5.49 million for individuals
2018 – $11.2 million for individuals, $22.4 million for married couples
These exemptions are tied to the lifetime gift tax and generation-skipping transfer tax as well.
This could be a golden opportunity to reduce the size of your taxable estate by making lifetime gifts and skip a second generation of transfer taxes as well. Families could also consider making a substantial gift to escape losing everything to a catastrophic illness or a long-term stay in a nursing home. If you are considering large lifetime gifts or feel you should begin thinking about it, you need to consult with us and your accountant today.
We will be discussing this and other estate planning issues during out annual LIFE Program
meetings in February. If you feel you need to consider this or some other legal transaction, call our office today to schedule an appointment!