Are you curious about estate tax in 2018?  For an individual who dies in 2018, the estate can be as large as $11,180,000 before federal estate tax will be due.  This dollar amount is called the basic exclusion amount.  What assets are included in the estate when calculating the size for estate tax purposes?  Life insurance proceeds on life insurance you own are included in your estate, as well as retirement plans, 401(k) or IRA accounts, investment accounts, stocks, bonds, and certain other property over which you are considered to have control.

In 2017, the basic exclusion amount was $5.49 million, but the Tax Cuts and Jobs Act of 2017  doubled the exclusion amount for years 2018 through 2025.  As of now, the 2017 provisions end in 2025 and the exclusion amount will go back to the old amount.  The 2017 tax law made portability permanent,  meaning a spouse can make use of the unused portion of the deceased spouse’s estate tax exclusion.  The 2017 tax law also made the basic exclusion amount permanent.

Keeping track of estate tax law changes can be important to your family’s financial future.  Atlanta law firm Hindson & Melton LLC can assist you with estate planning tailored for your family’s needs and goals.  Call us to discuss your family’s situation.

© Karen S. Hindson, Hindson & Melton LLC