Some of the key numbers used in estate planning and long-term care planning are adjusted each year. Let’s look at some of the numbers that are in place for this year.
Estate Planning
(Federal Numbers)
Annual gift tax exclusion $18,000
Gift tax and estate tax applicable exclusion amount $13,610,000
Maximum gift and estate tax rate 40%
Noncitizen spouse annual gift tax exclusion $185,000
Generation-skipping transfer (GST) tax exemption $13,610,000
GST tax rate 40%
Special use valuation limit (qualified real property $1,390,000
in decedent’s gross estate)
These federal numbers indicate the amount that can be transferred during lifetime or after death without incurring any transfer tax and the maximum tax rate for transfers over the exemption amounts.
Long-Term Care Planning
(Michigan Numbers)
Divestment Penalty Divisor $10,780.00
Individual Resource Allowance $2,000.00
Resource Allowance for a Couple (both in a facility) $3,000.00
Minimum Community Spouse Resource Allowance $30,828.00
Maximum Community Spouse Resource Allowance $154,140.00
Minimum Monthly Maintenance Needs Allowance $2,465.00
Maximum Monthly Maintenance Needs Allowance $3,853.50
Personal Needs Allowance $60.00
Life Insurance Limit $1,500.00
Home Equity Limit $713,000.00
These Michigan numbers direct planning for long-term care and possible Medicaid qualification.
Let Us Help
The key numbers shown above help guide strategies used for estate planning and long-term care planning. Schedule time with us and let us show you how these important numbers can be used to maximize the transfer of your financial wealth and minimize what could otherwise be lost to taxes and costs of long-term care.
