Federal Gift, Estate and Generation Skipping Tax Exemption Levels

Year

Estate Tax Exemption

Generation Skipping Tax Exemption

Lifetime Gift Tax Exemption

Max Estate &
Gift Tax Rates

2016*

$5.45 million per
person
$10.90 million per couple

$5.45 million per
person
$10.90 million
per couple

$5.45 million per
person
$10.90 million
per couple

top rate
of
40%

2017*

$5.49 million per
person
$10.98 million per couple

$5.49 million per
person
$10.98 million
per couple

$5.49 million per
person
$10.98 million
per couple

top rate
of
40%

2018*

$11.18 million per
person
$22.36 million per couple

$11.18 million per
person
$22.36 million per couple

$11.18 million per
person
$22.36 million per couple

top rate
of
40%

* adjusted annually for inflation per the American Taxpayer Relief Act of 2012.

Gift Tax Annual Exclusion
Gift tax is a tax on assets passed from one individual to another during life. The annual amount excluded from gift tax is linked to the inflation rate and increases periodically to the nearest $1,000. The gift tax annual exclusion amount for gifts from one individual to another individual (not charity) in 2018 remains at $15,000 per person per donee. This means that you may give up to $15,000 to each of any number of individuals in 2018 without paying tax on those gifts. As an example, a couple with two children may each give $15,000 to each child, for a total of $60,000 without paying any gift tax (2 people x 2 children x $15,000 each = $60,000). A lifetime gift tax exemption may be used for gifts above the $15,000 annual amount.

You can learn more about estate, gift and income taxes and charitable deductions, and also read IRS Publication 950 Introduction to Gift and Estate Taxes at http://www.irs.gov/ .

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This web page does not provide legal or financial advice, nor is it a comprehensive review of the topic. You should consult your legal and financial advisors and Clarkson University before making or planning your gift. (3/2018)