The Bill was signed into law by President Trump on the 4th of July. Many of its tax provisions are extensions from the 2017 Tax Cuts and Jobs Act, as to its application to federal estate tax. The new law raises the federal estate tax exemption amount to $15,000,000 per person and $30,000,000 per married couple. The unified GST (Generation-Skipping Transfer) tax equals that of the individual amount, just as before. The new exemptions take hold starting in 2026, and will be indexed for inflation.
Before all of the Veuve Clicquot champagne is gone, remember — this new federal law does not affect the State and Commonwealth’s estate taxes. Therefore, residents of Massachusetts must still pay estate taxes to the Commonwealth if their estate is over $2,000,000 and there is no doubling for married couples under the state law. Those who reside in Maine will still have an estate tax bill for an estate of over $7,000,000 (no doubling there either).
This means, of course, that careful credit shelter (A/B ) trusts will still be needed to address the State and Commonwealth’s estate taxes. Now you may finish the Verve Clinique… and call Attorney Brian L. Champion, at Libby O’Brien Kingsley & Champion — (207) 985-1815. A free 30-minute discussion will help you determine what estate plan will work best for you and your family. We look forward to your call, and working with you on a new or updated estate plan.
