New Gift Rules Under the Tax Plan

While much political debate is abound, the recently signed Tax Plan doubles the gift and inheritance tax from $5.6 million to $11.2 million. What does this mean for you? For the majority of Americans, absolutely nothing. Only a small number of estates would come close to reaching the $5.6 million exemption limit. Double that amount and predictions are that only 1,800 estates would be subject to estate tax in 2018 and beyond. If you are one of those 1,800 estates, planning will be key as the provision will sunset in 2026, absent congressional action. For the majority of us, absent winning the lottery, most planning will be around who gets it within your family, not how to avoid Uncle Sam being one your beneficiaries.