2018 federal estate and gift tax exemptions
The 2018 tax exemption for estates and gifts has risen to $5.6 million per individual. Previously, individuals were only able to leave up to $5.49 million to their heirs without being held liable for paying federal estate or gift taxes. The number is even greater for married couples who wish to leave money to their heirs. The exemption for married couples is now up to $11.2 million. The reason for the rise in exemptions are due to inflation and are adjusted according to the Internal Revenue Service’s latest numbers. It is also important to note that an individual can give $15,000 in gifts to any number of other people without having it count under the lifetime gift tax exemption.
Some states have incredibly high estate and/or inheritances taxes with typically low exemption rates. For example, Oregon only has an exemption of $1 million but the state estate tax is at 16 percent.
Some of the ways in which couples or individuals may want to consider giving gifts or inheritance are through creating irrevocable trusts (even those that skip generations), creating charitable trusts, and to use the gifts to obtain life insurance policies.
Estate taxes can be confusing. If you have questions, contact our firm today.
Working with an experienced estate planning attorney, such as Jaci Feldman of the Woodland Hills, California, Law Office of Yacoba Ann Feldman, will ensure that you are taken care of when you need it most. Contact The Law Offices of Yacoba Ann Feldman for a consultation today.