2019 Update: Laws Regarding Estate Tax Exemption and Gift Exclusions
Last year we reported on the fact that the estate tax exemption limit doubled between 2017 and 2018. This was a sharp divergence from the usual uptick, which has been gradual for many years. As a result, the number of estates subject to taxation is even less than before. Did the trend continue in 2019? And what about tax exclusions on gifts?
Estate Tax Exemption Regulations
In 2018, any estate with a total value of under $11,180,000 was exempt from taxation under the law. That number has once again increased. While the change was back to a normal increase rather than doubling, the figure for 2019 is $11,400,000. What can you do if your estate is larger than $11.4 million and you want to avoid taxes for your heirs? One option is to distribute some of your estate while you are still alive.
Gift Exclusions in 2019
Gift exclusions have remained the same this year at $15,000 per person per year. What does that mean? You can distribute $15,000 to each person you want to give a gift to this year, and they won’t have to pay taxes on that gift. And remember that this is per person, so you can gift a couple (make sure both names are on the check) $30,000 per year tax-free.
Assistance in Avoiding Tax Penalties on Gifts and Estates
The laws are making it easier than ever to avoid taxes for heirs and the recipients of large gifts. Learn more about how to make sure your estate goes to the people you love rather than on taxes by calling 619-344-0360 to speak with the estate planning professionals at Petrov Law Firm.
