2019 Estate and Gift Tax

The IRS has published new guidelines relating to estate and gift tax changes for 2019. Starting this year, estates of decedents who die during 2019 have a basic estate tax exemption amount of $11,400,000 (increased from $11,180,000 in 2018). This means that the estate of a person dying in 2019 with more than $11.4 million in assets may pay a federal estate tax (on assets which do not pass to charity or to a surviving spouse). Over both deaths of … Continued

Here’s why the rich hate the estate tax

  Death and taxes may be unavoidable. Taken together, they become a firestorm. The federal estate tax has been a hot-button issue since it was first imposed under the Revenue Act of 1916, when 10 percent was levied on portions of an estate exceeding $5 million. The reason this one component of fiscal policy remains so hotly debated and highly politicized is because Americans are largely divided over its impact. Some believe it is a tool to prevent the concentration … Continued

You can give away up to $11 million and save on taxes

  Even as controversy heats up around the transfer of wealth from the real estate empire of the president’s father, Fred Trump, to his children, it’s getting much easier to gift millions of dollars — legally — to family. The Tax Cuts and Jobs Act raised the gift and estate tax exemption — also known as the unified credit — to $11.18 million per person in 2018, more than doubling the limit under the old tax law. This means that … Continued

How the new tax law affects every age — from babies to boomers – MarketWatch

As always, two things remain constant: (1) you will get older every day and (2) you will get taxed all along the way. In this article, I’ll explain some key age-related tax and financial planning milestones to remember for you and your loved ones, taking into account changes included in the new Tax Cuts and Jobs Act (TCJA). Age 0-23: Kiddie tax can bite even harder under the new law Under the dreaded Kiddie Tax rules, part of a young … Continued

Myth: Life Insurance is NOT Taxable

  You may think that life insurance is tax-free. Unfortunately, the “no tax on life insurance” idea is only partly true: Life insurance is income tax-free. In other words, recipients of a decedent’s life insurance policy do not have to pay income tax on that sum. However, if it’s large enough, the decedent’s estate — including any life insurance proceeds — could be subject to federal and/or state estate taxes. As an example, let’s say you have a $1 million … Continued