2018 Estate Tax Calculator

After the passage of the tax bill last year, many clients felt that, with the increased exemption, they no longer had an estate tax liability. What many of our clients do not know is that in 2026, the unified credit is scheduled to drop back to its 2017 level (adjusted for inflation). In addition, many people do not understand how their estate may increase in size, even at a relatively low growth rate, between now and then. As a result, we developed this calculator to help our clients understand how their growing estates may be impacted by the 2026 decrease in the unified credit.

With the tax bill passed, a client in his early 70s decided there was no need to continue his planning because he believed his estate wouldn’t be taxable. But when he began to understand the impact that the reduction in the unified credit would have on his estate, even as it grew at a modest 7% rate, he decided to continue the planning process. He came to believe that he still needed to protect his estate and give himself a range of options in the future. Moreover, he understood that his insurability could always change, so he purchased life insurance to protect his beneficiaries.

We hope you find this tax calculator helpful. If you would like a consultation with Texas Financial Partners, please email us at info@texfp.com or call Rebecca Bates at 214.443.2423.