2017 Adjustments to Estate Planning and Elder Law Thresholds

The IRS, State of Michigan and Veterans Administration have completed their annual adjustments to important thresholds in the estate planning and elder law world. Here is a quick reference guide to the current numbers.

Estate and Gift Tax

Estate, Gift and GST Tax Exemption Equivalent: $5,490,000
Gift Tax Annual Exclusion: $14,000
Annual Exclusion for Non citizen Spouse: $149,000
Maximum Estate and Gift Tax Rate 40%

Estates and Trusts Code

Intestate Share of Surviving Spouse with Children with Decedent: $224,000
Intestate Share of Surviving Spouse with no Children with Decedent: $150,000
Homestead Allowance (spouse/minor’s shelter during estate administration): $22,000
Exempt Property (spouse/children’s right to household and personal property): $15,000
Family Allowance (to support spouse/minors during estate administration): $27,000
Small Estates (qualifies for summary procedure): $22,000
Small Trusts (May be terminated as too small to justify administration expenses): $75,000

Medicaid Asset and Income Thresholds

Maximum Community Spouse Asset Allowance: $120,900
Minimum Community Spouse Asset Allowance: $24,180
Maximum Community Spouse Income Allowance (monthly): $3,023
Monthly Income Cap for Home and Community Based Waiver: $2,205
Average Monthly Cost of Nursing Home Care (Divestment Penalty Divisor): $8,018
Maximum Home Equity Value $560,000

Veterans Aid & Attendance Benefits (Maximum Monthly Benefit)

Single Veteran $1,794.25
Married Veteran $2,127.08
Surviving Spouse of Veteran $1,153.00
Veteran Married to Veteran $2,846.08

If you would like further information on estate planning or elder law topics, please contact David E. Waterstradt, JD, CELA, at 231/773-1169 or by email at david@davidwaterstradt.com. David is a Certified Elder Law Attorney by the National Elder Law Foundation, the only elder law certification program accredited by the American Bar Association.