The Republican Tax Plan: Analysis – Estate & Gift Taxes

Sandy Botkin
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Estate and Gift Tax Changes

Under pre-Tax Cuts law, the first $5 million adjusted for inflation was exempt from estate and gift tax.

For decedents dying and gifts made after December 31, 2017 and before January 1, 2026, the new law doubles the base estate and gift tax exemption from $5 million to $10 million, which is indexed for inflation occurring after 2011. Thus, it is expected to be around $11.2 million per decedent by 2018.

Sandy’s elaboration: Each spouse gets their own exemption. Thus, the exemption for a couple should be about $22.4 million in 2018. Now you can give away a bundle to your heirs without having to worry about any gift or estate tax.

This ends the discussion on the personal changes of the new Tax Law. Starting on Wednesday, I will start discussing the business and especially the small business changes that resulted from the new tax law. So stay tuned.

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