Choose The Right Team



By: Katie Charleston Law, PC

Estate & Gift Tax Updates for 2018

Financial Planning

Federal Estate Tax
With the new tax bill comes additional changes to the federal estate tax exemption. Whereas 2017 brought us $5.49 million per individual for the exemption and 2017 was suppose to be $5.6 million per individual, the new tax bill nearly doubles what that exemption will be in 2018. The annual gift tax is also increasing from $14,000 per individual to $15,000 per individual. See chart below.

Estate Tax Exemption for 2017 $5.49 Million
Scheduled Exemption for 2018 Pre-Tax Bill $5.60 Million
Projected 2018 Exemption under Tax Bill $11.18 Million
Projected 2018 Exemption increase under Tax Bill $5.69 Million


What this means is that you have a lifetime estate tax exemption, or ability to transfer your assets to your loved ones up to $11.18 million, without a tax bill. Until 2026 that is, when this increase is set to expire and the numbers are expected to return to 2017 rates.

For California, Nevada and Texas residents, the federal estate tax is all you need to worry about as these States do not impose a separate State estate tax.

Many estate plans are designed around existing or prior estate and gift tax exemptions. As such, it is a good idea to see your estate planning attorney in 2018 to review your current plan or to put a plan in place.

This article is a service of Katie Charleston of KATIE CHARLESTON LAW. If you would like to learn more about these new laws and how you can plan for them, you can call me at (714) 729-3529 to learn more about the services we offer. This update is a sample of the services we provide to families and business owners on a regular basis throughout California, Nevada and Texas. As a Family Business Lawyer, it is not only my job, but my passion to help families and businesses plan for their future through comprehensive legal planning.