The tax law known as the Tax Cuts and Jobs Act (H.R. 1), signed by President Trump on December 22, 2017, contains important changes to provisions governing gift, estate, and generation-skipping transfer (GST) taxes:

• Effective January 1, 2018, the amount exempt from gift, estate, and GST taxes will temporarily increase to $10 million per person. This amount is indexed for inflation. It appears that in 2018 the exemption from gift, estate, and GST taxes will be just under $11.2 million for an individual and just under $22.4 million for a married couple.
• Absent further Congressional action, the increased exemption from gift, estate, and GST taxes will expire on December 31, 2025.
• The annual gift tax exclusion amount ($14,000 for 2017 and $15,000 for 2018 for single donors, and double those amounts for married donors) remains unchanged. The annual exclusion amount will continue to be indexed for inflation.
• Tax basis rules will continue as before. Inherited property will receive a stepped-up tax basis. Gifted property (in most cases) will retain the donor’s tax basis with no step-up.

The Tax Cuts and Jobs Act's increased tax exemptions provide new opportunities for gift and estate planning. Taking full advantage of these opportunities will require careful review, including close attention to the impact of possible future expiration of the increased exemptions. The Act also may require some individuals to update their current estate planning documents to ensure that they are not giving "too little" or "too much" to their beneficiaries.