October 27, 2018
In 2019 the federal Estate Tax Exemption is 11.4 million for an individual or 22.8 million for a married couple.
So how does this effect you?
Put simply, this will only effect you if the total value of your estate exceeds the estate tax exemption amount. The vast majority of estates do not approach this level, so estate tax planning does not have to be a concern for most people. Which is nice, because now much more focus in estate planning can be on other issues, such as asset protection, income tax, and taking care of your family, over having to plan around the estate tax, which in its day was quite onerous.
What if your estate is over the estate tax exemption amount?
Then we should talk about an estate tax plan. If your estate is over the estate tax exemption amount, then your estate will be required to pay a marginal estate tax rate of 40%. This can be avoided through advanced estate planning and protection planning. Sometimes just an irrevocable life insurance trust is enough to adequately deal with estate tax concerns.
The new 2019 Estate Tax Rate will be effective for the estates of decedents who passed away after December 31, 2018.