Major Changes To Estate Tax
The Tax Cuts and Jobs Act, signed by President Trump on December 22, 2017, is a total rewrite of the tax code, but it did not entirely eliminate the taxation on estates.
Under TCJA, Uncle Sam’s claim on inheritances is slashed thanks to the doubling of how much you can leave to heirs tax-free.
The exemption is $11.2 million for an individual in 2018 and $22.4 million for couples, and it will increase annually by the rate of inflation in the years ahead.
Estates in excess of the exemption pay tax at the 40% rate, but the number of estates that will pay any tax is expected to drop from 5,500 in 2017 to 1,700 in 2018.
If you've enjoyed this video blog Join Our Weekly Newsletter, or want more information. Please email us at firstname.lastname@example.org or http://masteringyourmoney.com/