The President signed Public Law No. 115-97, formerly known as the Tax Cuts and Job Act, into law on December 22nd (hereinafter the "Act"). Among other sweeping changes, the Act doubles the base lifetime gift and estate tax exclusion and GST tax exemption of $5 million to $10 million, as indexed for inflation. For 2018, this translates to an exemption amount of roughly $11.2 million per person.
Beginning in 2026, the gift and estate tax exclusion and GST tax exemption return to their base amount of $5 million, as they would have been indexed for inflation. Thus, as enacted, the increase is temporary.
Following the Act's changes, it may be necessary to review your documents to avoid unintended results in the future and to best achieve your tax planning goals.