When the Tax Cuts and Jobs Act was signed into law on December 22nd, 2017, in this represented the most far reaching tax reform in the country in decades. There are significant changes within this law that will impact a variety of different taxpayers but this will most significantly affect high net worth individuals.
Exemptions that had been scheduled to increase to $5.6 million in 2018 before the Act, will instead double to $11.2 million under the Act for gift estate and GST tax exemptions. Because the higher exemption amounts may be reduced by subsequent legislation are not available after 2025.
Anyone who intends to make large lifetime gifts may want to lock in the current exemption levels.
Scheduling a consultation directly with an experienced estate planning attorney may be the best way to do this and to get further information about carry over income versus stepped up and access to gifted access. The right estate planning attorney can walk you through the various strategies available to you and help you document a plan that keeps your unique needs in mind.
