When newspapers reported about the demise of Mark Twain, the American author and humorist quipped that “rumors of my death have been greatly exaggerated.” More than a century later, the same could be said of the federal estate tax, which is effectively defunct for all but the richest Americans.
Under the tax bill signed into law on December 22, 2017, individuals can leave behind more than $11.2 million in wealth without triggering the tax. For them, the “death tax” is dead, at least until the law sunsets in 2026. But even for those of us who aren’t exactly rich, other death taxes may still be due once we are out of the picture. Careful planning can keep them to a minimum.