The new federal tax law entitled, “An Act To provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018,” which is commonly referred to as the Tax Cuts and Jobs Act of 2017 (hereinafter “TCJA of 2017”), has left many people questioning the amount of the Federal Estate and Gift Tax Exclusion.
The new law basically doubles the federal estate and gift tax exclusion for estates of decedents dying and gifts made after December 31, 2017 and before January 1, 2026, to $11,000,000 (or $22,000,000 for a married couple), subject to inflation. Generally, this means that an individual can transfer up to $11,000,000 in a lifetime and at death combined without incurring a federal estate or gift tax.
Prior to the new law, the federal estate and lifetime gift tax exclusion was $5,490,000 for an individual dying in 2017 and $10,980,000 for a married couple.
Currently, the New York State Estate Tax exemption is $5,250,000 until December 31, 2018, when it is set to coincide with the federal exemption by January 2019. It is unclear whether the New York State Estate Tax exemption will increase in January 2019 to meet the new federal estate and gift tax exclusion given the significant increase in the federal exemption.
If you have any questions about these new tax figures please contact us.
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