IRS Announces the 2019 Estate Tax and Gift Tax Exemptions
The Internal Revenue Service (IRS) has announced the estate tax exemption and gift tax exemption amounts for 2019. The 2019 Federal estate tax exemption will be $11.4 million. The Federal gift tax exemption will remain $15,000 annually for the time being. If your estate is larger than $11.4 million then the excess may be subject to the Federal estate tax.
The 2019 estate tax exemption will only apply to the estates of individuals passing away in 2019. For those who pass away in 2018, the current amount of $11.18 million will still apply. The exemptions are liable to change from year to year so those passing away after 2019 may be subject to different estate tax exemption limits.
Federal, Not State
Keep in mind that these exemptions are Federal exemptions on the estate tax, not the State of Illinois exemption limits. The Illinois estate tax exemption amount remains at $4 million. This is of course a much lower threshold so many more people in Illinois will find that their estate is subject to the Illinois estate tax while not being subject to the Federal estate tax. It should also be noted that Illinois’ estate tax does not have portability, meaning that the second to die spouse cannot use the unused exemption amounts from the first to die spouse’s estate. Therefore, it may make sense to reallocate assets between the estates of both spouses in Illinois through the creation of revocable trusts.
Available Estate Planning
If your estate may be subject to the Federal estate tax (because it is above the exemption amount) then you should consider estate planning. There are options available to reduce the Federal estate tax assessed against an estate, including lifetime gifting under the annual gift tax exemption amount, portability planning between husband and wife, the creation of Irrevocable Life Insurance Trusts (ILITS), and the creation of credit-shelter trusts. If your estate will be subject to the Federal estate tax it is important to speak with an estate tax attorney such as the attorneys at Johnston Tomei Lenczycki & Goldberg LLC. Such a move could potentially save your family a lot of money that would otherwise be paid in estate tax.
Contact the Libertyville Estate Tax Lawyers at Johnston Tomei Lenczycki & Goldberg LLC Today
The Federal estate tax can be onerous, but with planning it can be minimized. It is important to consider a holistic estate planning approach so that all options available may be utilized to reduce the estate tax. The Libertyville and Lake County estate planning lawyers at Johnston Tomei Lenczycki & Goldberg LLC will work with you to determine the best options available to reduce your estate tax liability. Call us today at (847) 549-0600 for a no-charge initial consultation. We offer flat-fee, upfront pricing so you will know the exact cost of our services before we enter into a representation agreement. Estate planning is important, but it does not have to be difficult. We strive to ease the burden of planning and leave you with a sense of peace when your plan is in place.
Phone Number: (847) 549-0600
Fax Number: (847) 589-2263
350 N. Milwaukee Ave., Ste. 202
Libertyville, IL 60048
223 N. IL. Rt. 21, Ste. 14
Gurnee, Illinois 60031
2100 Manchester Road, Suite 920
Wheaton, IL 60187