Thursday, October 15, 2020

Nothing wrong with thinking ahead

 Kiplinger: Federal Estate Tax Exemption Is Set to Expire – Are You Prepared?

The current exemption equivalent of $11.58 million per person will last only until 2025, and then will revert to the pre-2018 level of $5.6 million - unless the law is changed between now and then. (The article touches upon but does not really explore the fact that this part of the Internal Revenue Code is virtually certain to be changed some time in the next four years.) 

One item of interest: "The Internal Revenue Service has decided there will be no clawback on lifetime gifts. This means that any gifts made under the current exemption will not be subject to estate taxes in the future, even if the exemption is reduced." The source for this statement is not identified, but it does present some planning options for a very small segment of our population. 

New amendments to EPIC

Public Act 1 (2024) made a number of changes to the Estates and Protected Individuals Code (EPIC). These changes were given immediate effect...