The Estate Tax Exemption Went Up. Should You Care?
At Liebmann & Van Straten Legal Group, LLC we know Estate Planning in Green Bay is important. As part of our Estate Planning practice, it is important for us to keep tabs on important changes in the law that could affect our Estate Planning clients in Green Bay, the Fox Valley and throughout Wisconsin. One thing that is important for us to keep abreast of is the changes to the estate and gift tax exemptions. It’s helpful to us, and to our clients, for us to stay informed, and pass this information on so that we can share our expertise in Estate Planning with you as we receive it.
Last month, the Internal Revenue Service announced that the Estate and Gift Tax exemption for someone that dies in 2019 has risen to $11.4 million dollars (from $11.14 million in 2018) (Rev. Proc. 2018-57). This also means that a married couple will be able to protect $22.8 million for their heirs and avoid paying federal estate or gift taxes. (Assuming that portability is elected after the first spouse dies). In addition, the $15,000 annual exclusion remains for 2019. The annual exclusion allows each person to give $15,000 to any individual they would like, each year, and not have it count towards the lifetime exemption. (i.e. a husband and wife can each give $15,000 to each of their children, each year ($30,000 in total to each child)).
While it is extremely unlikely that most people doing Estate Planning in Green Bay need to be concerned about the lifetime exemption (There were 1,890 taxable estates in 2018 in the entire country), planning is still important. Estate Planning is very important to issues unrelated to taxes such as guardianship of children, probate avoidance, asset protection, creditor protection and special needs issues. Not having $11.4 million dollars is not a license to ignore these issues.
Should you have any questions regarding the relationship between estate taxes, gift taxes and Estate Planning in Green Bay and its surrounding Wisconsin communities, please do not hesitate to contact the Estate Planning attorneys at Liebmann & Van Straten Legal Group, LLC. We can be reached at (920) 784-2900. Liebmann & Van Straten Legal Group, LLC prides itself on its knowledge in Estate Planning, Long-Term Care Planning, wills, trusts, and powers of attorney. Do not hesitate to contact the trusted Green Bay Estate Planning attorneys at Liebmann & Van Straten Legal Group, LLC.