Have you ever thought about minimizing your estate when you pass away by taking advantage of options to give assets away now? If so, this is smart planning and it could make a lot of sense for your beneficiaries and loved ones.
Every year the Internal Revenue Service reviews their threshold limits that trigger gift and federal estate taxes and the 2018 limits have just been released. In 2017, federal estate taxes are assessed for a person’s estate of $5.49 million or higher and a married couple’s estate is evaluated at $10.98 million or higher.
The IRS has boosted these amounts for 2018, however. Federal estate taxes assessed on a single person’s estate will include $5.6 or more and a married couple’s estate of $11.2 million or more. Furthermore, the gift tax liability has been increased to $15,000 per year.
This means that each individual can gift a maximum of $15,000 to another person in a year without incurring a gift tax. This is an increase from $14,000 which has been in effect since 2013. This is a good way to downsize your own estate while also benefitting your loved ones while you’re still around.
The general rules have not changed, however, so married couples are eligible to give up to $30,000 to another person together without any tax implication. Consulting with an experienced attorney is strongly recommended.
