You can give away up to $11 million and save on taxes

Even as controversy heats up around the transfer of wealth from the real estate empire of the president’s father, Fred Trump, to his children, it’s getting much easier to gift millions of dollars — legally — to family.

The Tax Cuts and Jobs Act raised the gift and estate tax exemption — also known as the unified credit — to $11.18 million per person in 2018, more than doubling the limit under the old tax law.

This means that any one person could transfer more than $11 million, either in the form of gifts while alive or in bequests after death — and do so without having that amount be subject to the 40 percent gift and estate tax.

The estate tax has been a roller coaster since first imposed in 1917, when 10 percent was levied on portions of an estate exceeding $5 million. At its peak in the 1940s, it charged 77 percent on portions over $10 million, then 70 percent for amounts over $5 million from 1976 to 1982.

Wealthy families should know that while they have the blessing of the IRS to make large gifts for now, the exemption is set to fall back to about $5 million per person at the end of 2025.

And the stakes are high. Over the next 30 to 40 years, $30 trillion in financial and nonfinancial assets is expected to pass from baby boomers — the wealthiest and one-time largest generation in U.S. history — to their heirs.

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