The new tax law that was passed in December 2017 takes effect for tax years beginning after 2017 and most provisions dealing with individual tax reform and transfer taxes are effective for taxable years 2018 through and including 2025.
The Basic Exclusion Amount is doubled from 5.49 million for people who died in 2017 to an estimated 11.8 million for people dying in 2018 and after (indexed for inflation beyond that until 2025).
The new law also doubles the Generation Skipping Transfer (GST) tax exemption.
It also expanded application of 529 accounts and now includes tuition at public, private or religious elementary or secondary schools, but is limited to $10,000 per student per taxable year.
Many experts believe that the focus of estate planning, from a tax perspective, will now shift from a focus on estate tax planning to a focus income tax planning.
And remember, we will not know what happens after 2025. Stay tuned for more.
Seglund Gabe Pawlak & Groth, PLC
28345 Beck Road
Wixom, MI 48393
Phone: (248) 869-0030
Fax: (248) 869-0039