The new tax act (formerly known as the Tax Cuts and Jobs Act (“TCAJA”) that President Trump signed into law on December 22, 2017 doubles the estate and gift tax exemption (as well as the generation-skipping  tax (“GST”) exemption) (the “exemptions”).  The current exemptions for 2017 are $5,490,000 for a single person or $10,980,000 for a married couple. In 2018, the exemptions will be approximately $11,200,000 per person and $22,400,000 for a married couple.  However, the exemptions are expected to return to the 2017 amounts on January 1, 2026.  If you have a taxable estate (over $5,490,000 for a single person or $10,980,000 for a married couple), you may consider gifting property this year that will appreciate in value such that the appreciation will not be taxed upon your death. In 2026, the new exemptions will revert to the values in 2017.  Otherwise, there is no rush to make any gifts because if gifted, the beneficiaries of your estate will lose the step up in basis of these assets upon your death, and you will likely have time to make the gift if the exemptions are reduced prior to 2026.  In this manner one preserves the step up in basis if he or she were to die before the exemptions decrease.  As a final note, in 2018 anyone may gift up to $15,000 (the annual gift tax exclusion was increased for 2018 from $14,000 to $15,000) to any number of recipients without using any of your exemption amount.  If you have any questions about any of the exemptions or gifting, please contact Robin Miskell at (602) 889-5329, or any of the DW estate planning attorneys.