One of the more controversial proposals in the 2017 GOP tax cut plan being debated currently includes the potential elimination of the federal estate tax. Under current federal estate tax law, the federal estate tax only applies to amounts above an “excluded” dollar amount.
For persons dying in 2017, only assets above $5,490,000 are subject to the federal estate tax. Up to nearly $11 million may be excluded for a couple.
For some historical perspective, note that for several years in the 1990s, the exclusion was $600,000. In 2001, the federal exclusion was $675,000. The federal estate tax exclusion jumped to $1 million in 2002; $2 million in 2006, and $3.5 million in 2009. Since 2010 or so, it has been $5 million or a bit more. » Read more..