Under the Tax Cuts and Jobs Act of 2017, the federal estate tax exemption increased from $5.49 million to $11.4 million per individual (in 2019). This boost means a married couple can exclude a staggering $22.8 million from estate tax!
But this dramatic change has also prompted many clients to question whether they still need an irrevocable life insurance trust (ILIT) if their estate is valued below this exemption. The answer is . . . it depends.