CNN Money Quotes Beth Kaufman: New Estate Tax Law Gives an Enormous Gift to Rich Families

01.09.2018
CNN Money

It's always good to inherit money, whatever the tax consequences. But for the lucky few, it will be especially lucrative and tax free over the next eight years.

. . .

"One does not need to die before 2026 to take advantage of this increased exemption since it can be used for lifetime gifts," said Beth Shapiro Kaufman, an estate tax lawyer at Caplin & Drysdale and former associate tax legislative counsel at the Treasury Department.

That's because you're allowed to give away money while you're alive, tax free, up to the amount of the estate tax exemption. But what you give in life will reduce your exemption at death.

Until last year, you could only give away $5.5 million (or $11 million as a couple) in your lifetime. But under the new law, you may give away up to twice those amounts without owing taxes.

Even if you die after 2025, the legislation makes clear that the gifts you make under today's higher exemption levels will retain their benefit even if the estate tax exemption level falls in the future, Kaufman said.

For the full article, please visit CNN Money's website.

Excerpt taken from the article “New Estate Tax Law Gives an Enormous Gift to Rich Families” by Jeanne Sahadi for CNN Money.

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