These updates are particularly critical for those families that are concerned with reducing their taxable estate in order to avoid paying estate taxes when they pass away.
Starting January 1, 2018:
- The federal estate tax exemption amount will be $5.6 million.;
- The state (Maryland) estate tax exemption amount will be $4 million; and
- The annual exclusion for gift tax purposes will be $15,000 (up from $14,000 which it has been since 2013)
It's important to keep in mind that the tax reform may change all of this, but this is currently the law of the land.
It is worth noting that the article on Forbes.com indicates that the latest rumblings are that the estate tax repeal will be sacrificed in order to secure lower corporate and individual income tax rates.
Reference: Forbes (October 20, 2017) IRS Announces 2018 Estate and Gift Tax Limits: $11.2 Million Per Couple