Happy New Year!
Now, time to talk taxes! The 2019 tax changes are:
- The Estate and Gift tax exemption rate is increased (adjusted for inflation) to $11.4 Million per individual in 2019. This is an increase from $11.18 Million per individual in 2018.
- Planning together, in 2019, married couples can transfer a total of $22.8 Million in inheritance or gifts without paying gift or estate tax (subject to prior use of the credit).
- The annual gift exclusion amount is unchanged from 2018. It remains at $15,000.
Remember, the tax law that ushered in these increased Federal Estate Tax exemption amounts expires at the end of 2025. Talk with your accountant or attorney to see if you could benefit from taking steps before 2026 to utilize the tax exemption.