Westchester County Probate & Estate Planning Attorney
520 North State Road, Suite 301 A
Briarcliff Manor, NY 10510
Phone: (914) 923-1600
Monday - Friday, 9:30am - 6pm
Saturday - By Appointment Now Accepting Credit Cards! We Will Make House Calls
The IRS just announced new cost-of-living changes that affect income taxes and estate and gift taxes. Two changes will affect many clients because the annual gift tax exclusion and federal estate tax exemption have been increased. This is good news.
First, the annual gift tax exclusion which started years ago at $10,000/year, will be $15,000 for 2018 - up from $14,000 for the past few years. This means that for 2018, you can make gifts of $15,000 each, to an unlimited number of people, and not eat into your federal estate tax exemption. Many clients make exempt gifts to children and grandchildren as part of a strategy to pare down a sizable estate which may otherwise be subject to estate tax.
The IRS also increased the basic estate tax exemption to $5,600,000 up from $5,490,000 for 2017. In New York, the exemption is presently at $5,250,000 which stays the same until January 1, 2019.
The 401(k)-contribution limit also increases, from $18,000 to $18,500, for 2018. And more people are eligible to make Roth IRA contributions. For 2018, the phase-out for singles/heads of households is $120,000-$135,000 (up $2,000 from 2017) and $189,000 to $199,000 (increased $3,000) for married couples. Reach out if you need more specifics! ...