For an estate of a US citizen or domicile who makes taxable gifts or passes away in calendar year 2018, the basic exclusion amount is $11,180,000 for determining the amount of credit against Estate or Gift Tax. This creates opportunities for more gifting / estate planning going forward. Remember that gifts to US charitable trusts could be deemed to be a settlement for UK tax purposes, assuming the settlor is considered UK domiciled or deemed domiciled. Please speak to us if you would like advice on having US/UK tax relief on charitable contributions and avoiding any UK Inheritance Tax on a settlement into trust.
There could be potential tax efficient gifts that could be considered before year-end. For example, you could make a gift of up to $15,000, per donee, per donor and not use up the current $11.18M estate tax threshold.
We recommend that individuals seek professional advice where appropriate before taking any action, so please fill out the form below if you have any questions.