Estate Planning Key Numbers PC1370-Print

ESTATE PLANNING

ESTATE PLANNING KEY NUMBERS

You will find here some key numbers associated with estate planning, as well as the federal gift tax and estate tax rate schedules for 2017 and 2018.

2017

2018

Annual gift tax exclusion:

$14,000

$15,000

Gift tax and estate tax applicable exclusion amount: Noncitizen spouse annual gift tax exclusion: Generation-skipping transfer (GST) tax exemption:

$5,490,000 1 + DSUEA 2

$11,200,000 1 + DSUEA 2

$149,000

$152,000

$5,490,000 3

$11,200,000 3

GST tax rate

40%

40%

Special use valuation limit (qualified real property in decedent’s gross estate): $1,120,000

$1,140,000

1 The basic exclusion amount. The 2018 amount may be adjusted by the IRS. 2 Deceased spousal unused exclusion amount (for 2011 and later years) 3 The GST tax exemption is not portable. The 2018 amount may be adjusted by the IRS.

2017 AND 2018 GIFT TAX AND ESTATE TAX RATE SCHEDULE

TAXABLE GIFT/ESTATE

TENTATIVE TAX EQUALS

PLUS 18% 20% 22% 24% 26% 28% 30% 32% 34% 37% 39% 40%

OF AMOUNT OVER

0 - $10,000

$0

$0

$10,000 - $20,000 $20,000 - $40,000 $40,000 - $60,000 $60,000 - $80,000 $80,000 - $100,000 $100,000 - $150,000 $150,000 - $250,000 $250,000 - $500,000 $500,000 - $750,000 $750,000 - $1,000,000

$1,800 $3,800 $8,200 $13,000 $18,200 $23,800 $38,800 $70,800 $155,800 $248,300 $345,800

$10,000 $20,000 $40,000 $60,000 $80,000 $100,000 $150,000 $250,000 $500,000 $750,000 $1,000,000

$1,000,000 +

Unified credit amount: $2,141,800 in 2017, $4,425,800 in 2018 4

Credit shelter amount: $5,490,000 in 2017, $11,200,000 in 2018 4

4 The 2018 amount may be adjusted by the IRS. Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable – we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

To explore how the preceding article could potentially impact your investments, please contact a Commerce Trust advisor. 1-855-295-7821 | commercetrustcompany.com

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