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Level 7

What is the estate tax exemption?

Did the amount change with the recent tax reform?

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Level 9

What is the estate tax exemption?

The estate tax exemption doubled as a result of the tax reform.


The new law allows for an $11.2 million exemption per taxpayer, which is good for tax years 2018 through 2025.  So couples who properly plan could exclude 22.4 million from their taxable estate. 


It is recommended that those with large estates review and revise their existing estate plans to take advantage of the new estate exemption amounts.



The Tax Cuts and Jobs Act didn’t change the rules for charitable deductions – except that the cash donations deduction limit increased from 50 percent to 60 percent of your adjusted gross income. But the TCJA made changes in other parts of the tax law that may prevent taxpayers from charitable giving.  Taxpayers may no longer donate because the new law makes it less likely that a taxpayer will itemize.  And you need to itemize to take a charitable deduction.  

Here are some of the tax law changes effective in 2018: 

  • Lowered individual income tax rates, which reduces the value of all tax deductions 
  • Increased the standard deduction to $12,000 for single taxpayers and $24,000 for couples
  • Capped the state and local tax deduction at $10,000