The IRS, on October 25, 2016, released some adjustments to the tax code. Of note to our clients, the IRS increased the unified gift/estate exemption for 2017 to the amount of $5,490,000. The 2016 exemption amount is $5,450,000.00. This allows a married couple to have an additional $80,000.00 in assets before the Federal Estate tax kicks in.
It should be noted that Illinois has not adjusted its exemption amount. The Illinois exemption amount does not get indexed for inflation and remains at $4,000,000.00. So for those estates over the Illinois limit, $4,000,000.00 and below the Federal exemption, there needs to be a review to discuss what estate tax may be due and what can be done to avoid it.
The annual federal gift tax exclusion remains at $14,000.00 annually per donee.