Estate planning is a critical component to some Americans overall financial plan and there are some things that you should know about the new estate tax exemption.
- The Tax Cuts and Jobs Act of 2017 doubled the amount you can exempt from the federal estate, gift, and generation-skipping transfer taxes.
- The new federal exemption amount is $11.18 million.
- Married couples can use both spouses’ exemptions to jointly shelter $22.36 million from federal transfer taxes.
- The new federal exemption amount applies to the estates of individuals dying and gifts made after December 31, 2017 and before January 1, 2026.
- Exemption amounts for state estate tax may be far lower than the federal exemption amount so even if you do not owe the federal estate tax, your estate may owe state estate tax. (Not all states have estate taxes.)
Tax considerations are an essential piece of your wealth management plan. Davis & Hodgdon Associates CPAs has been assisting Vermont individuals and business owners with tax consulting and retirement planning for more than 25 years. Call our office in Williston 802.878.1963 or Rutland 802. 775-7132 to schedule a tax planning strategy session today.
Information published in Eye on Money, September/October 2018 issue.