Blog: Unified Credit against Estate Tax
There are certain exemptions under the tax law that are adjusted for inflation. The IRS in its Rev. Proc. 2017-58 announces some of the changes for 2018. Two of those changes include the unified credit against estate tax. For an estate of any decedent dying in calendar year 2018 the basic exclusion amount will be $5,600,000.00. Thus, there is no federal estate tax until an estate exceeds that amount subject to prior gifts and numerous other nuances. Also relevant is the fact that the annual exclusions for gifts for the first time in many years is going up. This is also index for inflation and when it goes up it goes up by $1,000.00. The first $15,000.00 of gifts to any person are not included in taxable gifts for that year. Whether or not you tell your children and grandchildren that it has gone up is up to you!