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Estate Tax Exemptions Under The New Tax Act

Estate Tax Exemptions Under The New Tax Act

Summary: The Tax Cuts and Jobs Act (TCJA) is effective as of January 1, 2018. Under the updated tax code, the federal estate tax exemption amount is now $10M for individuals and $20M for couples. This change can potentially impact Georgian’s estate taxes, income taxes, asset protection, business succession, guardianship of children, and special needs planning.

The Tax Cuts and Jobs Act (TCJA), a sweeping overhaul of the U.S. tax code, took effect at the beginning of 2018. The Act can potentially impact an individual’s estate planning, especially when it comes to leaving money to heirs and beneficiaries.

While the federal estate tax, gift tax, and generation-skipping tax rate remain 40%, the amount exempt under the TCJA is now $10M for individuals and $20M for couples. Also, it is likely that these estate tax exemptions will increase with inflation. Some states impose their own, additional estate taxes – however, Georgia is not one of them. Georgia follows the federal estate tax.

So, what does this all mean? It means that under the new TCJA provisions, most Georgia taxpayers do not have to worry about paying estate taxes.

Even though the federal estate tax exemption is now doubled, there are still other estate planning issues to consider. One of the biggest focuses of estate planning in recent years has been minimizing income tax – which will continue to be a key issue – along with other considerations including asset protection, business succession, later life planning, guardianship of minor children, and planning for family members with special needs. It is also important to note that under the TCJA, estate executors may still need to file a tax return for any income the estate has, as well as a final tax return for the decedent (the individual who passed away).

The Tax Cuts and Jobs Act went into effect January 1, 2018, and is not set to expire until December 31, 2025. If you have questions about the new tax bill and how it could impact your personal estate planning, you can contact Siedentopf Law via our website at or by calling (404) 736 – 6066.

Find out more about taxes and charitable bequests here.

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