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2019 Estate Tax Exclusion and Gift Tax rules

The IRS issued Revenue Procedure 2018-57 announcing the official estate and gift tax exclusion amounts for 2019.

  • The 2019 applicable federal estate tax exclusion is increased to $11.4 million. The top federal estate, gift and GST tax rate remains unchanged at 40%.
  • This exclusion is inclusive of the individual taxpayer’s lifetime gift tax exemption: under the new rules, in 2019 a husband and wife can transfer to their children $22.8 million of assets, free from gift tax.
  • This exemption is scheduled to sunset on December 31, 2025, when it is expected to go back to $5 million, indexed for inflation.
  • The Annual Gift Tax exclusion remains at $15,000, as in 2018.
  • The Annual Gift Tax annual exclusion to a Non-US Citizen Spouse is now increased to $155,000.