News, Taxes

IRS announces higher 2019 estate and gift tax limits

Last year, the Internal Revenue Service announced new official estate and gift tax limits for 2019. Through the end of this year, you can still take advantage of these rates. Read on for more details or contact your local NCF office to learn how this year’s limits might impact your end-of-year giving.

The estate and gift tax exemption for 2019 is $11.4 million per individual, up from $11.18 million in 2018. That means an individual can leave $11.4 million to heirs and pay no federal estate or gift tax, while a married couple will be able to shield $22.8 million. The annual gift exclusion amount remains the same at $15,000.

For the ultra rich, these numbers represent planning opportunities. For everybody else, they serve as a reminder: Even if you don’t have a taxable estate, you still need an estate plan.

The 2017 tax cuts slashed the number of estates subject to the federal estate tax, by doubling the exemption amount from a base level of $5 million per person. So, there were only an estimated 1,890 taxable estates in 2018 (according to the Tax Policy Center). That compares with 4,687 taxable estates in 2013 reflecting a base $5 million exemption, and 52,000 taxable estates in 2000 when the exemption was $675,000.

Read the full story at Forbes.
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