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Law Offices of Maria N. Jonsson, PC

2017 Estate Tax Exemptions

In 2017, the Estate and Gift Tax Exemption amount is set at $5.49 million per individual, up from $5.45 million in 2016.

In excess of that, the federal estate tax rate remains at 40%. As such, a married couple will be able to shield $10.98 million from federal estate and gift taxes, which makes the Portability Election even more lucrative. California is one of the states without separate Inheritance tax.

The annual gift exclusion remains at $14,000. This means that one can give away $14,000 to as many individuals as they like without having to file a gift tax return.

In addition, one can make gifts for medical, dental, and tuition expenses to as many individuals (friends or relatives) as they wish, so long as they pay the service provider directly. These gifts don’t count towards any of the lifetime limits.