Every year the Internal Revenue Service adjusts tax exemptions and deduction limits to keep them in alignment with inflation. The changes that are made can have a big impact on estate plans, even if the actual adjustments are relatively small.
The IRS recently announced some of those important changes. They could make a difference for people planning their estates, according to the Wills, Trusts & Estates Prof Blog in "Estate Planning Inflation Adjustments for Tax Year 2018 & 2017-2018 Priority Guidance Plan."
Changes include:
- Lifetime gift tax exemption increased to $5.6 million.
- Annual gift tax limit increased to $15,000.
- Annual gift tax limit to a foreign spouse increased to $152,000.
- Estate tax exemption increased to $5.6 million.
- Failure to file a return within 60 days of due date, to result in a penalty of $215 or 100% of amount due, whichever is lower.
If you have questions about how these changes could impact your estate plan, visit an estate planning attorney.
The Petrosewicz Law Firm can assist you with your estate planning needs. Contact us today at (281) 344-9455 or [email protected].
Reference: Wills, Trusts & Estates Prof Blog (Nov. 8, 2017) "Estate Planning Inflation Adjustments for Tax Year 2018 & 2017-2018 Priority Guidance Plan."
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