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Posts tagged gift tax.
By Elizabeth Pack on October 16, 2018 at 1:50 PM

Businessman showing percentage symbolsThomson 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.

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By Keith Herman on April 27, 2018 at 1:35 PM

$100 bills sticking out of a white and red gift boxOn December 22, 2017, President Trump signed into law what is commonly known as the Tax Cuts and Jobs Act of 2017 (2017 Act). The 2017 Act increased the estate, gift, and generation-skipping (GST) transfer tax exemptions to $10 million, indexed for inflation ($11.18 million for 2018), and retained the estate/gift/GST tax rates of 40 percent. The gift tax exemption is now significantly larger than it has ever been, and larger than it was ever expected to be. Below are 10 things to consider in determining whether to make a gift to take advantage of the existing $11.18 million gift tax exemption. In addition to the tax benefits, making a gift during your lifetime allows your children or other beneficiaries to benefit from the gift, and you will also benefit by seeing them enjoy it.

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By Andrew Wolkiewicz, Keith Herman on January 31, 2018 at 10:54 AM

Paper house and calculator on top of a book, showing estate planningOn Dec. 22, 2017, President Trump signed into law what is commonly known as the Tax Reform and Jobs Act of 2017 (2017 Act). As explained in more detail below, the 2017 Act increased the estate, gift, and generation-skipping transfer (GST) tax exemptions. This legislation expires at the end of 2025 and the tax laws will revert to where they stood prior to the 2017 Act unless Congress makes additional changes before then.

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By Keith Herman on December 20, 2017 at 1:12 PM

Clock and calendar, showing time passingAs the year draws to an end, now is a good time to review your existing tax situation and estate planning in general. More specifically, this is also a good time to look at your annual gifting strategies in order to avoid missing some important tax opportunities.

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By Keith Grissom on November 3, 2017 at 12:47 PM

U.S. Capitol BuildingOn Nov. 2, 2017, House Republicans released their long-awaited tax reform bill called “The Tax Cuts and Jobs Act.” The bill contains sweeping changes in a variety of areas and expands upon, and in some cases changes, what was included in the “Unified Framework for Fixing Our Broken Tax Code,” released in September 2017 (discussed here).

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By Andrew Wolkiewicz on September 18, 2017 at 10:10 AM

Money laying next to a gift box. Bloomberg BNA has released its U.S. tax rate projections for 2018, which can be found here.

There are two very important changes expected that will impact estate planning in the coming year. BNA is projecting that the annual gift tax exclusion will rise from $14,000 to $15,000. This means individuals and married couples will be able to transfer more wealth, tax free, each year. This change is particularly important for trusts funded annually with an amount equal to the gift tax exclusion. 

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By Andrew Mitchell on April 25, 2017 at 1:45 PM

Image of money wrapped in a bowAlong with the recent talk of health care and income tax reform, there has been much discussion of repealing “death” taxes or estate taxes (see our earlier post regarding that topic here). We are yet to find out if there is enough political support to make that happen or how transferring wealth at death will look without it. More certain, however, is that another wealth transfer tax, the gift tax, is here to stay, primarily because the gift tax has long been considered a “backstop” for the income tax. For example, potential gift tax consequences complicate plans to transfer property to an individual in a lower income tax bracket solely to sell the property before transferring the proceeds back to the original owner.

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By Keith Grissom on January 26, 2017 at 9:23 AM

Businesswoman stacking coinsThe following is a general overview of the estate, gift, generation-skipping transfer (GST) and basic income tax rates for 2017.

Estate tax: Generally, a person dying between Jan. 1, 2017 and Dec. 31, 2017, may be subject to an estate tax, with an applicable exclusion amount of $5.49 million (increased from $5.45 million in 2016). The top marginal rate remains 40 percent.

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