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Estate and Gift Tax Changes

For 2018 the gift tax exclusion is now at $15,000 per donee increased from $14,000 in 2017.

The Tax Cuts and Jobs Act was enacted on December 22, 2017, and basically doubles the estate, gift and generation skipping transfer tax exemptions to approximately $11,200,000 per person and approximately $22,400,000 per married couple. These increased exemptions only last until December 31, 2025, and without future legislation the amounts will return to the 2017 levels. Also, it is possible that before 2026, a new congress and administration may change the law and lower the exemptions. These increased exemptions provide many opportunities for planning, such as changing bypass or credit shelter trusts, and/or utilizing the additional gift tax exemptions before the law reverts. Those with significant assets should have their estate plans reviewed in conjunction with these changes.

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