Estate Planning Case Study

Estate Planning 2018 2019 2020 2021

Annual Gift Tax Exclusion $15,000 $15,000 $15,000 $15,000 Annual Gift Tax Exclusion to a Noncitizen Spouse

$152,000 $155,000 $157,000 $159,000

Applicable Exclusion Amount:

• Gift Tax $11,180,000 $11,400,000 $11,580,000 $11,700,000 • Estate Tax $11,180,000 $11,400,000 $11,580,000 $11,700,000 Applicable Credit Amount:

• Gift Tax Credit Equivalent $4,417,800 $4,505,800 $4,577,800 $4,625,800 • Estate Tax Credit Equivalent $4,417,800 $4,505,800 $4,577,800 $4,625,800 Maximum Estate and Gift Tax Rate 40% 40% 40% 40% GSTT Exclusion Amount $11,180,000 $11,400,000 $11,580,000 $11,700,000 Estate Installments (Section 6166) $1,520,000 $1,550,000 $1,570,000 $1,590,000 Special Use Valuation (Section 2032A) $1,140,000 $1,160,000 $1,180,000 $1,190,000

2021 Annual Estate Planning Limits

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If taxable income is: The tax is: Not over $2,650 10% of taxable income Over $2,650 but not over $9,550 $265 plus 24% of the amount over $2,650 Over $9,550 but not over $13,050 $1,921 plus 35% of the amount over $9,550 Over $13,050 $3,146 plus 37% of the amount over $13,050

Income Tax Rate Schedule for Estates and Trusts (2021)