Federal Estate Tax for 2019
The Internal Revenue Service announced recently that the Federal Estate & Gift Tax exemptions will be increasing for 2019. In 2019, individuals will be able to pass up to $11,400,000 free of any estate tax upon their death. The estate tax is unified with the gift tax, so an individual may also choose to give away $11,400,000 during their lifetime rather than wait until death. Note, for example however, that if you give away $2,000,000 during your life as a “gift”, it would not be taxable during your life, but you would now only be able to leave $9,400,000 free of estate tax at your passing. The increase in estate tax exemption at the federal level marks an increase from the $11,180,000 you are able to pass estate tax free in 2018.
As you might imagine, these numbers impact very few estates. According to the tax policy center, only approximately 1,890 estate tax returns will be filed in 2018. Click here for a link to the tax policy center data. You may read more about the 2019 numbers in IRS Rev. Proc. 2018-57 by clicking here.
Annual Exclusion for 2019
There is no change to the federal annual exclusion amount. (This is the amount that you can gift to someone without having to report the gift on a gift tax return). In 2019, you will be able to continue gifting up to $15,000 per year under the annual exclusion.
Minnesota Estate Tax for 2019
In Minnesota, our estate tax is scheduled to increase to $2,700,000 for 2019. This represents an increase of $300,000 from the $2,400,000 that may be transferred free of Minnesota estate tax in 2018. Minnesota does not currently have a gift tax.
Despite the relatively few estates that these numbers impact, there are frequently other laws changing that affect your current estate planning documents. As such, it is always a good idea to discuss your estate plan with an experienced Minnesota estate planning attorney to determine whether any new laws have affected your plan negatively.
Contact our office today for a free consultation to discuss your estate planning needs and review any existing documents you currently have in place.
Zach Wiegand is a Burnsville estate planning attorney and the owner of Gold Leaf Estate Planning, LLC. Gold Leaf Estate Planning is an estate planning law firm that also handles probate and trust administration in Minnesota. We serve the Twin Cities metropolitan area with a focus on estate planning for clients in Burnsville, Eagan, Savage, Prior Lake, Lakeville, Apple Valley, Eden Prairie and the South Metro. The firm also handles probate in Dakota County, Washington County, Scott County, Hennepin County, and Ramsey County. Zach was named a Minnesota Super Lawyer – Rising Star for both 2017 & 2018 and he is a member of WealthCounsel – a national organization of estate planning attorneys dedicated to practice excellence. You can contact Zach via e-mail at firstname.lastname@example.org or by calling (952) 658-6503. Gold Leaf Estate Planning is located in Burnsville at 3000 County Road 42 W., Suite 310, Burnsville, MN 55337.