Estate and Gift Tax Limits for 2019

In addition to estate fees and the taxes some states levy on estates that are being probated, federal taxes can sometimes be owed to the IRS. In 2018, the exemption for estates to pay taxes was set at $11.18 million, but in 2019 that amount is being raised to $11.4 million for an individual, with couples set at $22.8 million. That is the value of cash, real estate, stock, or other assets that can be transferred to heirs without incurring federal taxes.

 This figure has more than doubled in two years, as a taxable estate was set at $5.49 million in 2017. In the year 2000, the amount was only $675,000. This is part of a pattern that is subjecting fewer and fewer estates to federal taxes. In 2018, only about 1,890 estates were taxable.

 It is important for all families to have a solid estate plan that takes possible taxes into account. If you believe that your estate may be subject to federal taxes as the law now stands, you will want to speak to an estate planning attorney and financial advisor to come up with a solid financial plan.

 The annual gift exclusion amount will stay the same in 2019 as 2018, at $15,000. This means that you can give away up to $15,000 to an individual over the course of the year without having to report that gift to the IRS. There are no limits to how many $15,0000 gifts you can make to different individuals. Gifts beyond the exclusion amount and are reported to the IRS are put towards the $11.4 million combined estate/gift tax exemption.

 If you have further questions about estate and gift taxes, it is advised that you speak to an estate attorney, or you can visit the IRS website at for more information.

Colin Austin