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2017 Inflation Adjustments for Trust and Estate Planning

Some federal trust and estate tax thresholds[1] are indexed to the inflation rate. The Internal Revenue Service recently issued an announcement (Rev. Proc. 2016-55) of adjustments effective January 1, 2017.
2017 2016
Estate and Gift Tax Exemptions[2] $5.49 million $5.45 million
Gift Tax Annual Exclusion $14,000 per donee $14,000 per donee
Top Income Tax Bracket (39.6%) For Trusts and Estates $12,500 $12,400
[1] Tennessee has no state gift tax and no state inheritance tax.
[2] Married couples can double the exemption by electing “portability” at the time of the first to die.
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