Estate and Trust Provisions
Tax Rate Structure | ||
Rates | Estate and Trusts | |
10% | Up to $2,550 | |
24% | $2,550 to $9,150 | |
35% | $9,150 to $12,500 | |
37% | Over $12,500 | |
- Doubles the basic exclusion amount for gift and estate tax purposes from the current exclusion of $5.49 million in 2017, as indexed for inflation, to $11.2 million, which will be indexed for inflation.
- Lowers the gift tax rate to a top rate of 35%.
- Repeals the estate and generation-skipping transfer taxes, while retaining the stepped up basis rules, in 2024.
Observations
The new high exemption amount will effectively eliminate the estate tax for most people. The step-up in basis at death would continue to be in effect.