Ethan R. Okura
Hawai‘i Herald Columnist
Happy New Year! The start of a new year often brings changes in state and federal laws that could affect your estate and Medicaid planning. The following is the 2020 update of important numbers to be aware of as you go about your planning.
• How much money and property can one have at death without paying estate taxes? At the end of 2017, Congress passed a new tax bill and the president signed it into law. It doubled the previous estate and gift tax exemption from $5 million to $10 million (adjusted for inflation). With inflation, the actual amount exempt from federal estate taxes for 2020 is $11,580,000 per person. This “doubling” of the estate tax exemption will expire at the end of 2025, unless Congress makes it permanent. If the Congress does not make it permanent, the federal estate tax exemption will go back to $5 million per person (adjusted for inflation) in 2026.
See more articles by Ethan by visiting https://okuralaw.com/blog/