Analysts are projecting the IRS will increase estate tax exemptions for 2018, as well as boost the annual gift tax exemption, according to Forbes in "Estate Tax Exemption To Top $11 Million Per Couple in 2018."
Analysts forecast an increased exemption for a single person to $5.6 million and approximately $11 million for married couples. The gift tax exemption is estimated at $15,000.
This should give wealthy people and their estate planning attorneys a little bit more flexibility, as they attempt to shrink estates to below the threshold.
While most people who might be affected by this exemption increase would prefer to see the estate tax repealed entirely, that is increasingly looking like it will not happen this year.
Congress has turned its attention to tax reform, but getting anything passed could be a long process and will likely continue into next year.
Repealing the estate tax is also controversial. If Democratic votes are needed to pass tax reform legislation, it might take the estate tax off the table.
An estate planning attorney can answer any questions you have on the estate tax and gift tax exemptions, as well as advise you on creating an estate plan that fits your unique circumstances.
Reference: Forbes (Sep. 15, 2017) "Estate Tax Exemption To Top $11 Million Per Couple in 2018."