Share

The Montana Estate Lawyer

Thursday, December 10, 2020

Estate Tax Exemption And Annual Gift Tax Exclusion For 2021

Official Estate and Gift Tax Limits for 2021 

The Internal Revenue Service announced at the end of October the official estate and gift tax limits for 2021: The estate and gift tax exemption is $11.7 million per individual, up from $11.58 million in 2020. That means an individual could leave $11.7 million to heirs and pay no federal estate or gift tax, while a married couple could shield $23.4 million. This assumes no changes will be made in 2021 to the existing tax structure.

 2021 Election Results

But what if the election results remain as they currently stand and Joe Biden is elected president? Time will tell, but it could mean an end to the existing estate and gift tax exemption tax structure. President Trump’s tax overhaul when he was elected doubled the then-$5 million per person base level exemption amount to $10 million, from 2019 through year-end 2025, with a flat tax rate of 40%. (The $10 million is indexed for inflation; that accounts for the $11.7 million figure.) Republicans desire to make the doubled exemption amount permanent. Biden has proposed restoring estate and gift taxes to their 2009 level: $3.5 million per person for the estate tax, $1 million for the gift tax, and a top rate of 45%. We’ll see what happens.

By the way, the annual gift exclusion amount for 2021 stays the same at $15,000 according to the IRS announcement.

Jon


Archived Posts

2021
2020
2019
2018
December
November
October
September
August
July
June
May
April
March
February
January
2017
December
November
October
September
August
July
June
May
April
2016
2015
2014
2013
2012
2011


Our law firm, attorneys and lawyers handle matters throughout Montana (MT), including Billings, Bozeman, Great Falls, Havre, Helena, Kalispell, Lewistown, Livingston, Missoula, Shelby and Whitefish.



© 2021 Scott, Tokerud & McCarty, P.C. | Disclaimer
Eight 3rd St. North, Suite 507, Great Falls, MT 59401
| Phone: 406-727-2200

Estate Planning | Elder Law | Veterans Aid & Benefits | Advanced Estate Planning | Probate / Estate Administration | Business Law | Business Succession Planning | Purchase/Sale of a Business | Special Needs Planning | Guardianships | Asset Protection | Planning for Children | Pet Trusts | Resources | Events

Attorney Website Design by
Zola Creative