The IRS recently announced the 2021 estate and gift tax limits: The 2021 exemption is $11.7 million per individual, which means that a single person could leave $11.7 million to his or her heirs with no tax due, while a married couple by use of an A/B Trust, could shield $23.4 million before any Federal tax is due.
While these exemptions are substantial, the Biden Administration is considering revamping the tax laws across the board, including estate taxes. While nothing is set in stone at this time, estate taxes are definitely in their cross-hairs, and experts predict rolling back these exemption amounts by as much as 90%! At the ESQUIRE LAW GROUP, we strongly recommend that our married clients have an A/B Trust in place to double their estate tax exemption, whether the size of your estate currently requires it or not. Estate taxes are always uncertain, so we feel it is best to plan for the worst case scenario in the future, rather than scrambling to solve a future unforeseen tax problem.