The Internal Revenue Service has announced that the basic federal estate tax exclusion for the estates of decedents dying during calendar year 2017 will be $5.49 million, up from $5.45 million for calendar year 2016.
In addition, if a fiduciary chooses to use the special use valuation method for qualified real property, the available aggregate decrease in the value of the property resulting from the choice may now not exceed $1,120,000, up from $1,110,000 for 2016.
The increase in the estate tax exclusion means that the lifetime tax exclusion for gifts will also rise to $5.49 million, as will the generation-skipping transfer tax exemption.
The annual gift tax exclusion of $14,000 will not change for 2017.
For details on many of these and other inflation adjustments to tax benefits, go to: https://www.irs.gov/pub/irs-drop/rp-16-55.pdf
If you want help understanding how these numbers impact your ability to protect your family's legacy from the tax collector, call the offices of Fabisch Law, L.L.C. to set up a consultation with Rhode Island Estate Planning Lawyer Matthew Fabisch at 401-324-9344.