Evey Black Attorneys logo

Hollidaysburg: 814-317-6914 

Roaring Spring: 814-317-6254

Higher exemptions with federal tax reform law

On Behalf of | Feb 27, 2018 | Estate Planning |

Pennsylvania residents should be aware of how the Tax Cuts and Jobs Act will affect their estate plans. The legislation allows individuals a short-term opportunity to reallocate a substantial amount of money without being assessed federal estate, generation-skipping transfer or gift taxes.

Beginning on Jan. 1, 2018, the exemptions for the estate, estate and gift taxes were doubled. Single individuals are able to transfer up to $11,180,000 without taxation while married couples are allowed to transfer up to $22,360,000. The exemption amounts also account for annual inflation increases.

However, taxpayers will only have until Jan. 1, 2026, to take advantage of the exemption increases. The exemptions will then return to what they were for 2017: $10,980,000 for married couples and $5,490,000 for single individuals.

It is expected that additional modifications will be made to the legislation between now and the sunset date. Taxpayers should begin now to establish planning strategies to take advantage of the higher exemptions before 2026.

Taxpayers may want to use trusts as part of their gifting strategy. Assets that are gifted directly to the beneficiary are at risk of being claimed by creditors the beneficiary may owe. However, if the assets are placed in a trust, they are protected from the beneficiaries’ creditors and spouses in divorce. Using a trust to manage gifts also allows the grantor to specify how the assets should be used and shields the gifted assets from estate, GST and gift taxes through use of the GST exemption.

An attorney who practices estate planning law may consider the assets and financial goals of a client and advise what strategies should be implemented to best take advantage of the increased exemptions for gift, GST and estate taxes. The attorney may recommend using certain trusts or wills as gifting tools.

FindLaw Network
Blair County Chamber of Commerce Hall of Fame, 2004

X

YOU MAY ONLY UTILIZE THE ONLINE PAYMENT SYSTEM TO PAY INVOICES ISSUED BY EVEY BLACK ATTORNEYS LLC.

Clients may NOT use the online payment system to pay any bankruptcy matter or inheritance tax imposed in an estate administration matter (Evey Black Attorneys LLC will not issue an invoice for these matters). Additionally, any municipal authority/township/borough sewer and/or water customer may NOT make any payment related to any delinquency for which this firm is collecting. Bankruptcy, estate administration tax matters and payments related to sewer and/or water delinquencies must be paid by cash, money order, certified bank check or personal check (personal checks in sewer/water delinquency matters or for inheritance tax payments may not be allowed in certain circumstances).

USE OF THE ONLINE PAYMENT SYSTEM IN VIOLATION OF THE ABOVE WILL RESULT IN EVEY BLACK ATTORNEYS LLC REFUNDING TO THE CREDIT CARD THE AMOUNT OF MONEY ORIGINALLY CHARGED, MINUS ANY TRANSACTION FEES EVEY BLACK ATTORNEYS LLC IS CHARGED, AND A $10 SERVICE CHARGE WILL BE IMPOSED. IN THE CASE OF A BANKRUPTCY PAYMENT, THE ENTIRE BALANCE WILL BE CREDITED AND THE CLIENT WILL REMAIN RESPONSIBLE TO PAY THE TRANSACTION FEES EVEY BLACK ATTORNEYS LLC IS CHARGED PLUS A $10 SERVICE CHARGE.

By clicking to proceed below, you are acknowledging you have read and understood the above restrictions on the use of the online payment system and agree to the charges set forth herein if you make a payment in violation of such restrictions.

PROCEED