Another year, another increase in the lifetime estate tax exemption for estates in North Carolina (and nationwide). Since the exemption amount is tied to inflation and set to increase each year (or maybe be repealed altogether), around this time each year estate planners and high net worth families await the expected exemption limits for the following year, as set by the Internal Revenue Service. 2017 saw a jump from $5.45 million per individual and $10.9 million per married couple to $5.49 and $10.98 respectively.
The Estate Tax Exemption for North Carolina Estate in 2018
For 2018, the exemption is expected to rise (although not fully confirmed by the IRS) to $5.6 million and $11.2 million respectively – quite a significant jump. This means that every dollar, up to $5.6 million, that passes from a single individual to his/her family during life or at death will pass tax free ($11.2 combined for a married couple), and every dollar over that amount will pass subject to a forty percent (40%) estate tax. Generally speaking, few families have wealth that would come close to the exemption amounts, but estate tax is a common concern for most people who are new to estate planning.
Annual Gift Tax Exclusion in North Carolina
That’s not the only welcome news to come from the IRS – we may also be set to see the Annual Gift Tax exclusion raise from $14,000 to $15,000 per year. While that may not seem like much to you, many high net worth families rely on annual gifting strategies to pass as much wealth as they can to their children in hopes of passing just under the lifetime exemption by the time they pass, or minimizing the amount of estate tax liability their family will ultimately face.
Plan Wisely
Planning for an expected estate tax liability can be difficult, but working with an experienced estate planning attorney can get a plan in place to avoid or reduce that liability as much as possible. Tax planning should be taken lightly, but it’s also unwise to just throw up your hands and say, “What do I care? I’ll be dead!” Talking about your options is as easy as contacting us for a free consultation.
Author Bio
Paul Yokabitus
Founder & Estate Planning Lawyer
Paul Yokabitus is the founder of Cary Estate Planning, where he helps North Carolina families protect what matters most through wills, trusts, probate, and special needs planning. Known for his “planning, not paperwork” approach, Paul turns complex legal concepts into clear, practical strategies so clients feel informed and confident at every step. He has been recognized as a Business North Carolina Legal Elite attorney and a Super Lawyers Rising Star, and was named to the Triangle Business Journal’s 40 Under 40. A graduate of Campbell University School of Law, Paul lives in the Triangle with his wife, Alix, and their two sons.
Linkedin | Avvo | SuperLawyers
How We Help North Carolina Families
Paul and his team at Cary Estate Planning are fully committed to creating a personalized experience to develop thorough and comprehensive estate plans. They value their clients and go above and beyond to make sure that no details are missed. I would highly recommend Paul to anyone looking to create an estate plan.
I was referred to Paul by my Real Estate Attorney and I could not say enough about how exceptional the client service has been from everyone I spoke to. The communication is prompt and I feel like they really took the time to answer all my questions and set things up exactly as I wanted, but also recommended things to make it easier on my family down the line.
After attending one of Paul’s estate planning seminars, my husband and I knew we wanted Paul to assist us with our estate planning. His honest, professional approach to this necessary part of life put us at ease with the process. We will continue to recommend Paul and Cary Estate Planning.
We had a great experience working with Paul Yokabitus and the team at Cary Estate Planning to set up our Will and Estate Plan. The process was clear and easy, and in the age of COVID, our signing session was very well done, easy, and safe.
The Cary Estate Planning team will make sure that you have the information you need to be confident in your estate planning decisions. I learned so much from videos, a one-on-one in-person consultation, the website, emails, and a newsletter mailed the old fashioned way. The fee is very reasonable given the importance of estate planning. No matter the size or number of your assets, don’t procrastinate like I did!
Paul is a masterful attorney. He’s very good at taking your intentions and defining that into a durable Trust and Will. Best of all he is as simple and plain-spoken as you like. Or as fast as intellectual as you may be. It’s all about your your speed and your desired outcomes. Would strongly recommend this firm.
Trusted Estate Planning
Attorney Offices in Cary, Raleigh, and Chapel Hill
Capability to meet virtually to help all NC residents
