IRS Makes Annual Inflation Changes

New rates are important to estates, as well as for estate planning. The IRS has announced some important changes in tax adjustments and deduction limits based on inflation. They can make a difference for people planning their estates, according to the Wills, Trusts & Estates Prof Blog in "Estate Planning Inflation Adjustments for Tax Year 2018 & 2017-2018 Priority Guidance Plan." Changes include: • Lifetime gift tax exemption increased to $5.6 million. • Annual gift tax limit increased to $15,000. • Annual gift tax limit to a foreign spouse increased to $152,000. • Estate tax exemption increased to $5.6 million. • Failure to file a return within 60 days of due date, to result in a penalty of $215 or 100% of amount due, whichever is lower. An estate planning attorney can advise you on creating an estate plan that fits your unique circumstances and takes the new IRS rates into consideration. Reference: Wills, Trusts & Estates Prof Blog (Nov. 8, 2017) "Estate Planning Inflation Adjustments for Tax Year 2018 & 2017-2018 Priority Guidance Plan