Oklahoma Inheritance Tax
Oklahoma Estate Tax
We no longer need to worry about Oklahoma inheritance tax. That is because the State of Oklahoma abolished the Oklahoma estate tax over 7 years ago. Even after the state legislature passed the legislation, there was still instability and uncertainty regarding both the Oklahoma estate tax return and federal estate taxes. People were still concerned with Oklahoma estate taxes. Then in 2013, the United States Congress passed the American Taxpayer Relief Act of 2013. This helped provide clarity for Oklahoma estate planning.
Federal Estate Tax
Now the IRS Estate Tax Exemption and IRS Gift Tax Exclusion are updated annually. The 2018 Tax Reform Act has increased the estate tax exemption for 2018 to $11.2 million per person, or $22.4 for a married couple. This is what is called “Portability”. With proper estate planning a wealthy couple can save a significant amount of money in taxes. While the federal estate tax exemption usually only applies to the wealthiest Americans, the annual gift exclusion could benefit many more people.
The annual gift exclusion is now $15,000. The annual gift exclusion means that you could potentially give anyone up to $15,000 annually tax free. If you have 3 kids, then you could give each child up to $15,000 annually tax free. This exclusion is per person. So, if a married couple has 3 kids, then they could give each child a combined $30,000 annually tax free.
Oklahoma City Estate Planning Attorney
With proper estate planning Americans can take advantage of of the estate tax exemption and the annual gift tax exclusion. And, remember there is no Oklahoma estate tax. So, whether you are a wealthy individual needing to plan for and use Portability, or you just wants to give you kids some money every year we can help. Please contact Oklahoma City estate planning laywer Steve Cortes today at 405-213-0856