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Thomson Reuters recently published its estimated figures for 2019 for estate and trust income tax brackets, as well as the exemption amounts for estate, gift and generation-skipping transfer (GST) taxes. These figures are adjusted annually for cost-of-living increases.
Pursuant to the Tax Cuts and Jobs Act, the measure of inflation has changed for these figures. Thomson Reuters warns that because of errors and ambiguities in the act, the estimates were made based upon what Thomson Reuters staff believed to be consistent with congressional intent.
Below is a summary of the 2019 figures. The original release from Thomson Reuters may be found here.
Estate Tax
Generally, a decedent dying between Jan. 1 and Dec. 31, 2019, may be subject to an estate tax, with an applicable exclusion amount of $11,400,000 (increased from $11,180,000 in 2018). The top marginal rate remains 40 percent.
Gift Tax
The lifetime gift tax exemption for gifts made during 2019 is $11,400,000 (increased from $11,180,000 in 2018). The top marginal rate remains 40 percent. The gift tax annual exclusion amount remains $15,000. The annual exclusion for gifts made to noncitizen spouses in 2019 is $155,000 (increased from $152,000 in 2018).
GST Tax
The GST tax exemption amount, which can be applied to generation-skipping transfers (including those in trust) during 2019, is $11,400,000 (increased from $11,180,000 in 2018). The rate remains 40 percent.
Income Tax
The tax rate schedule for estates and trusts in 2019 is as follows:
| If taxable income is: | The tax is: |
| Less than $2,600 | 10% of taxable income |
| Over $2,600 but not over $9,300 | $260 plus 24% of the excess over $2,600 |
| Over $9,300 but not over $12,750 | $1,868 plus 35% of the excess over $9,300 |
| Over $12,750 | $3,075.50 plus 37% of the excess over $12,750 |