The Tax Cuts and Jobs Act (TCJA) roughly doubles the transfer tax exemption from $5.6 million per individual to $11.18 million per individual or $22.36 million per married couple.
In 2018, the IRS Statistics of Income predicts that 2.71 million Americans will pass away, and 99.9% of them won't owe Federal estate taxes. In fact, less than 1-in-10,000 estates will have to pay estate taxes - all due to Trump's 2017 new tax law that increased the basic exclusion amount to $11.18 million for each individual. While fewer estate tax returns will be filed, it's expected that the new law will drive more and more wealthy persons to make lifetime transfers of property - thus increasing the need to file gift tax returns.
Changes to tax law can impact one's current and future tax obligations and financial planning strategies. As a result, it is wise to have a basic understanding of the impact of tax reform.