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Estate Planning 2021 and Beyond - Estate Taxes

The combined estate and gift tax exemption for the year 2021 is an astronomical $11,700,000 for individuals. Clair Law wants to make you aware that this combined tax exemption is scheduled to bounce back on January 1, 2026 to the sum of $5 million per individual (with future inflation adjustments). Everything that you own in your name is included in your estate for estate tax. It can include investment accounts, annuities, and life insurance proceeds - in addition to real estate and bank accounts. Additionally, property that you exercise substantial control over will also be included.