Estate Planning in 2020
The Tax Cuts and Jobs Act, called The Act signed into law in 2017, provides excellent estate planning opportunities. The lifetime exemption amount for the gift, estate, and generation-skipping transfer taxes increased from $11.4 million to $11.58 million on January 1, 2020. The annual gift tax exclusion amount remains at $15,000 per recipient or $30,000 for a married couple with both qualified per year.
The generation-skipping transfer tax (GSTT) exemption continues at a high amount of $11.58 million as of January 1, 2020. It has the potential to exempt assets from GSTT for an unlimited number of generations if planned wisely.
Clients should consider putting into place strategies to capitalize on the following opportunities in 2020 and take advantage of the temporary increases in exemptions from gift and estate taxes.
At this time transfers of property, whether by a lifetime gift or upon death, above the unified gift and estate tax exemption and are not otherwise exempt from transfer tax and are taxed federal rates of up to 40%. With proper planning, married couples will be allowed to transfer up to $23,160,000 without incurring an estate tax.
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Contact Hudack Law today at (877) 314-4309 Toll-free, please visit areas of service (open link in a new tab) or hudacklaw.com (open link in a new tab) for more information regarding which assets to transfer in order to optimize the benefits of any lifetime gifts.