Estate Tax and The Tax Cuts and Jobs Act
- posted: Jan. 02, 2018
Estate Tax: Prior to the Tax Cuts and Jobs Act passed by Congress and signed by the President just prior to Christmas, the Federal Estate Tax exemption amount was scheduled to be $5,600,000 for persons dying in 2018. For married couples, the exemption would be $11,200,000. These numbers are derived from the amount of five million dollars stated in the law plus an adjustment for inflation each year. The new tax law doubles this five million exemption plus the same inflation adjustment. This results in an increase to $11.18 million (estimate) and $22.36 million (estimate), respectively, indexed for inflation. The tax rate for those few estates subject to taxation remains at approximately 40 percent. Residents of Ohio do not need to worry about a State estate tax since Ohio repealed its estate tax effective in 2013.