How the New Year Affects Estate Planning
Does your estate planning reflect how the law has changed for 2017? The primary thing that changed as the hundreds of millions of people across America rang in the new year this week was the estate tax. Why is this the case? What changed? How does this affect your estate plans? Read on to learn more.
How 2017 Affects the Estate Tax
Over the past several years, the IRS has been in the habit of announcing changes to the estate tax threshold just a few months before the end of the calendar year, and this past Autumn was no exception. This increase is due to inflation. Thus, as inflation occurs, the IRS places a higher limit on how much of an estate is tax exempt when it passes on to a person’s heirs.
In 2016, the figure stood at $5.45 million. However, as has been the custom, that figure was increased for the start of the new year. In fact, this year’s increase was double that of last year. An additional $40,000 means that the estate tax threshold is now at $5.49 million.
How Does the Change in the Estate Tax Threshold Affect You?
If you are wondering how this change in the estate tax threshold affects you, or if this change results in the desire to alter your current estate planning, come and see the estate tax experts at Petrov Law Firm. We can help you maximize tax benefits, thereby ensuring that your estate goes to your loved ones rather than the IRS. Call 619-344-0360 to get started.