The Internal Revenue Service (the “IRS”) recently announced the 2018 estate and gift tax exemption amount. For 2018, an individual can transfer up to $5.6 million ($11.2 million per couple) without incurring federal estate or gift tax.
Additionally, the IRS announced that the 2018 annual gift tax exclusion amount will increase to $15,000 per donee (up from $14,000). This means that you can transfer up to $15,000 per person without incurring any gift tax liability or reducing your unified credit amount of $5.6 million so long as the gift is of a present interest.
While there is potential for tax reform that calls for the elimination of the federal estate tax, please continue to take advantage of lifetime gifting strategies, which will lessen, or even eliminate, your federal estate and gift tax liability.
If you have any questions regarding estate and gift tax matters, please contact Stefanie Pate. Stefanie is an associate in Leech Tishman’s Estates & Trusts Practice Group. Stefanie is based in the firm’s Pittsburgh office. She can be reached at 412.261.1600 or firstname.lastname@example.org.
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Leech Tishman Fuscaldo & Lampl is a full-service law firm dedicated to assisting individuals, businesses, and institutions. Leech Tishman offers legal services in alternative dispute resolution, aviation & aerospace, bankruptcy & creditors’ rights, construction, corporate, employee benefits, employment, energy, environmental, estates & trusts, family law, government relations, immigration, insurance coverage & corporate risk mitigation, intellectual property, international legal matters, litigation, real estate, and taxation. Headquartered in Pittsburgh, PA, Leech Tishman also has offices in Chicago, Los Angeles, New York, Sarasota and Wilmington, DE.