DONALD S. HENDEL, LLC
  • Welcome
  • Practice Areas
    • HIgh Net Worth Estate Planning
    • Wealth Preservation Trust
    • Asset Protection
    • Estate Tax Planning >
      • Terms
    • Probate & Estate Administration
    • Business Law
    • Business Succession Planning
  • About Us
  • Blog
  • Contact Us
  • Client Forms

Current
​news

new irs rules protect large gifts

11/25/2019

0 Comments

 
The 2017 tax law increased the federal combined estate and gift exclusion to $11,400,000.  The means that a taxpayer may make lifetime gifts and have a taxable estate of up to $11,400,000 without paying federal gift or estate tax.  Lifetime gifts reduce the estate tax exclusion dollar for dollar.  For example, if a taxpayer makes lifetime taxable gifts of $10,000,000, he would have a remaining estate tax exclusion of $1,400,000.  On January 1, 2016, the estate and gift tax exclusion is scheduled to decrease back to the pre-2017 level of approximately $5,600,000. 

It was unclear if a taxpayer would be subject to estate tax if prior to 2026 the taxpayer made gifts that exceed $5,600,000 and the taxpayer died after January 1, 2026.  On November 22 the IRS issued regulations that make clear that gifts made before 2026 that exceed $5,600,000 will not cause a taxpayer to be subject to estate tax if a taxpayer dies after January 1, 2026.  For example, if a taxpayer makes lifetime taxable gifts of $10,000,000 and dies on February 1, 2026, he will not pay estate tax on $4,400,000 ($10,000,000 minus $5,600,000).

The bottom line is that the temporary increase in the federal combined estate and gift tax exclusion is truly "use it or lose it." 
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Author

    Mr. Hendel has been practicing wealth preservation planning for over thirty -five years. ​

    Archives

    December 2020
    April 2020
    March 2020
    January 2020
    December 2019
    November 2019
    October 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    May 2018
    November 2017
    October 2017
    July 2017
    May 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    August 2016
    November 2015
    March 2015
    August 2013
    January 2012

    Categories

    All
    Awards
    Blog
    Business Planning
    Estate Planning
    Life Insurance
    News
    Tax Planning
    Updates
    Wills And Trusts

    RSS Feed

(203) 234-6321

© 2017 Donald S. Hendel, LLC 
Disclaimer 

315 Highland Avenue, Suite 101
Cheshire
, CT 06410

Phone: 203.234.6321 
​Donald S. Hendel, LLC serves clients throughout New York and Connecticut including Manhattan, Long Island, Westchester County, New Haven County, Fairfield County, and Litchfield County.
Overview | High Net Worth Estate Planning | Wealth Preservation Trusts | Basic Estate Planning Terms | Asset Protection | Estate Tax Planning | Probate / Estate Administration | Business Law | Business Succession Planning | Recent News | About Us
  • Welcome
  • Practice Areas
    • HIgh Net Worth Estate Planning
    • Wealth Preservation Trust
    • Asset Protection
    • Estate Tax Planning >
      • Terms
    • Probate & Estate Administration
    • Business Law
    • Business Succession Planning
  • About Us
  • Blog
  • Contact Us
  • Client Forms