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The estate tax is a tax on your right to transfer property
at your death. It consists of an accounting of everything
you own or have certain interests in at the date of death.
If you give someone money or property during your life, you
may be subject to federal gift tax.
The
Internal Revenue Service announced today the official
estate and gift tax limits for 2019: The estate and gift tax
exemption is $11.4 million per individual, up from $11.18
million in 2018. That means an individual can leave $11.4
million to heirs and pay no federal estate or gift tax,
while a married couple will be able to shield $22.8 million.
The annual gift exclusion amount remains the same at
$15,000. The Trump tax cuts slashed the number of estates
subject to the federal estate tax, by doubling the exemption
amount from a base level of $5 million per person.
In 2019, New York will follow suite and increase their
exemption to match the federal estate tax exemption of
$11,400,000.
Recently, the state of Connecticut announced their plans to
match the federal estate exemption by 2020, and New Jersey
recently repealed their estate taxes in 2018,
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