2018 Tax Law Changes- Estate & Trust Provisions
'Stephan Brewer, CPA, CTRS, JSM Tax, NTPI Fellow
!['Stephan Brewer, CPA, CTRS, JSM Tax, NTPI Fellow]()
'Stephan Brewer, CPA, CTRS, JSM Tax, NTPI Fellow
Legacy Tax & Resolution Svc ??The Rescue Squad for Overtaxed and Troubled Taxpayers | ?? Founder Audit Alarm | ??? Tax Problem Resolution | ?? Sophisticated Tax Planning |?? Tax Recovery | ?? Business Value Maximization
Tax Rate Structure
Rates Estate and Trusts
10% Up to $2,550
24% $2,550 to $9,150
35% $9,150 to $12,500
37% Over $12,500
- Doubles the basic exclusion amount for gift and estate tax purposes from the current exclusion of $5.49 million in 2017, as indexed for inflation, to $11.2 million, which will be indexed for inflation.
- Lowers the gift tax rate to a top rate of 35%.
- Repeals the estate and generation-skipping transfer taxes, while retaining the stepped up basis rules, in 2024.
Observations
The new high exemption amount will effectively eliminate the estate tax for most people. The step-up in basis at death would continue to be in effect.