The total estate tax exemption is projected to increase to $5.6 Million dollars per person in 2018. ClockThis is up from $5.49 Million per person in 2017. 

The annual exclusion for gift tax exclusion is projected to increase to $15,000 in 2018. That is an increase from $14,000 in 2017. (Please note that these increases are from BNA Bloomberg estimates and that the Internal Revenue Service typically makes the official announcement in October of each year). 

What this really means is things are more uncertain now than ever before. Congress released its proposal regarding tax reform last week. That proposal for tax reform includes the repeal of the Estate Tax, the Generation Skipping Estate Tax and the elimination of the 3.8% net investment Income Tax. Tax reform is also expected to result in reduced top corporate tax rates and reduced rates for certain types of pass through income. At the same time, the state of California has a bill pending that would provide for a California Estate Tax in the event that the Federal Estate Tax is repealed. Time will tell as to which, if any, of these proposed changes are actually enacted.

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