The estate and gift tax exemption at the federal level for 2020 is $11.58 million per individual, up from $11.4 million in 2019. That means an individual can leave $11.58 million to heirs and pay no federal estate or gift tax, while a married couple will be able to shield $23.16 million. The annual gift exclusion amount remains the same at $15,000.
Washington State estate tax exemption amount remains $2,193,000.00. This lower exemption amount seems to be catching clients off guard.
Estates in excess of the federal exemption amount are subject to a 40% tax on all assets over the exemption.
With a federal exemption rate this high, the majority of the tax planning clients will need at this point in time is for Washington estate tax. Washington currently has the highest estate tax rate in the nation.
Review our prior blog posts on how estate tax is calculated.
We are happy to assist clients with their estate planning needs. Feel free to email us with any questions.
Disclaimer: The information in this blog post (“post”) is provided for general informational purposes only, and should not be construed as legal advice from Leos & Gilkerson, PLLC or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a licensed lawyer.