Due to changes brought about by the new tax law, some charitably-motivated clients may wish to act now to make the most of the charitable deduction
Author: Jonathan Blattmachr Editor-in-Chief, InterActive Legal
The Tax Cuts and Jobs Act of 2017 (the "Act"), signed into law on December 22, 2017, makes sweeping changes to U.S. tax law. The Act touches on almost every aspect of tax law, including the estate and gift tax. The amount of the basic exclusion from estate tax is increased from $5 million to $10 million, which, adjusted for inflation, means that decedents dying in 2018 will have an $11.2 million exclusion from federal estate tax. Unlike prior versions of the legislation, the final Act does not provide for the ultimate repeal of the estate tax. Instead, it includes a "sunset" for the increased estate tax exemption, by providing that the increased basic exclusion amount applies to estates of decedents dying before January 1, 2026.