The IRS recently announced what the annual inflation changes will be for some important taxes for estates and those who are planning their estates.
The IRS recently announced some of those important changes. They could make a difference for people planning their estates, according to the Wills, Trusts & Estates Prof Blog in "Estate Planning Inflation Adjustments for Tax Year 2018 & 2017-2018 Priority Guidance Plan."
Changes include: (SUBJECT TO CHANGE SINCE CONGRESS MAY PASS NEW LAW)
· Lifetime gift tax exemption increased to $5.6 million.
· Annual gift tax limit increased to $15,000.
· Annual gift tax limit to a foreign spouse increased to $152,000.
· Estate tax exemption increased to $5.6 million.
· Failure to file a return within 60 days of due date, to result in a penalty of $215 or 100% of amount due, whichever is lower.
If you have questions about how these changes could impact your estate plan, visit an estate planning attorney.
Reference: Wills, Trusts & Estates Prof Blog (Nov. 8, 2017) "Estate Planning Inflation Adjustments for Tax Year 2018 & 2017-2018 Priority Guidance Plan."