---
url: 'https://www.fmjlaw.com/estate-tax-exemptions-2018/'
title: Estate Tax Exemptions Update 2018
author:
  name: Georgie Stocks
  url: 'https://www.fmjlaw.com/author/gstocks/'
date: '2017-11-02T16:25:45+00:00'
modified: '2025-09-30T17:13:59+00:00'
type: post
categories:
  - 'Trusts & Estates Blog'
image: 'https://www.fmjlaw.com/wp-content/uploads/2017/07/tax-468440_1920.jpg'
published: true
---

# Estate Tax Exemptions Update 2018

Below is a summary of the federal estate tax, gift tax, and Minnesota estate tax exemption amounts for 2018. Please contact FMJ’s [Trusts & Estates](https://www.fmjlaw.com/practice-area/trusts-estates/) group if you have any questions regarding the status of the laws.

**Federal Estate Tax Exemption**  
As of January 1, 2018, the federal estate tax exemption amount **will rise to $11.2 million**, up from $5.49 million in 2017, and $5.45 million in 2016. The federal estate tax remains at 40%.

**Annual Exclusion for Gifts**  
The annual exclusion amount for gifts in 2018 **will increase to $15,000**, which is up from $14,000 for gifts in 2017. This means that individuals can gift $15,000 to any person without incurring a gift tax or having to make any required filing. The amount in excess of the $15,000 will simply reduce the federal estate tax exemption available in the year of death. For married couples, this means they could give up $30,000 to each child without having to file any gift tax return.

**Minnesota Estate Tax**  
Upon the passage of the new tax bill (passed by the Republican-controlled legislature and reluctantly signed by Governor Mark Dayton in May 2017), the Minnesota estate tax exemption amount was increased from $1.8 million to $2.1 million per person (retroactive to January 1, 2017), with further increases scheduled in the coming years. Under the new tax bill, the estate tax exemption amount **is scheduled to increase to $2.4 million in 2018**, $2.7 million in 2019, and then $3.0 million in 2020. However, there is ongoing litigation surrounding this new bill and we believe the status of the Minnesota estate tax exemption is still up in the air.

**Next Steps?**  
***Please contact the [Trusts & Estates](https://www.fmjlaw.com/practice-area/trusts-estates/) attorneys at FMJ if you have any questions about the 2018 estate tax exemptions or if you would like to discuss your estate planning questions.***

*About FMJ’s Trusts & Estates Practice  
FMJ’s Trust & Estates group can help clients create and implement an estate plan in a time span that fits their needs. We make estate planning simple and affordable. Clients can email us at estateplanning@fmjlaw.com to have someone from our Trusts & Estates group contact them. We offer complimentary 30-minute initial consultations and flat-fee estate planning to fit every budget.*

[](https://www.addtoany.com/add_to/facebook?linkurl=https%3A%2F%2Fwww.fmjlaw.com%2Festate-tax-exemptions-2018%2F&linkname=Estate%20Tax%20Exemptions%20Update%202018)[](https://www.addtoany.com/add_to/twitter?linkurl=https%3A%2F%2Fwww.fmjlaw.com%2Festate-tax-exemptions-2018%2F&linkname=Estate%20Tax%20Exemptions%20Update%202018)[](https://www.addtoany.com/add_to/email?linkurl=https%3A%2F%2Fwww.fmjlaw.com%2Festate-tax-exemptions-2018%2F&linkname=Estate%20Tax%20Exemptions%20Update%202018)[](https://www.addtoany.com/add_to/linkedin?linkurl=https%3A%2F%2Fwww.fmjlaw.com%2Festate-tax-exemptions-2018%2F&linkname=Estate%20Tax%20Exemptions%20Update%202018)