The federal gift tax is unified with the estate tax. There is a $5.25 million unified exclusion in place in 2013 that encompasses all of the taxable gifts that you give along with the value of your estate. In other words, if you gave $5.25 million in gifts that were taxable throughout your life, you would use up this exclusion; and all of your estate would be subject to the estate tax. So giving gifts using the lifetime exclusion is not really in any way preserving your available estate tax … [Read more...] about Higher Tax-Free Transfers Possible This Year
IRS Implements Adjusted Exclusion Figure
Though there were many different possible outcomes, as it turns out, the fiscal cliff negotiations left us without a lot of changes to the estate tax rules. We passed along some of the details in a previous post, but we now know the exact amount of the estate tax exclusion for 2013 after the IRS has adjusted it for inflation. The new legislation calls for the retention of the base of $5 million that was put into place for the 2011 calendar year. In 2012 an adjustment for inflation brought this … [Read more...] about IRS Implements Adjusted Exclusion Figure
How Does “Cliff” Deal Impact Estate Tax?
Throughout 2012 there was a lot of uncertainty about the estate tax parameters that would be in place for 2013. Last year the estate tax exclusion was $5.12 million and the maximum rate of the tax was 35%. These provisions resulted from the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. This act was scheduled to sunset at the end of 2012. If Congress had not passed new legislation, the estate tax exclusion would have decreased to $1 million, with an increase … [Read more...] about How Does “Cliff” Deal Impact Estate Tax?
Election Coincides With Tax Relief Expiration
An interesting set of circumstances is simmering as the election season heats up, and it will affect people who are planning ahead for the future. Currently the estate tax exclusion is $5.12 million and the maximum rate is 35%. We have these figures in place because of provisions in the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. This tax relief act is going to expire at the end of this year. As we all know, there's going to be an election toward the end of … [Read more...] about Election Coincides With Tax Relief Expiration
Reminder: Estate Tax Exclusion Portability Is Temporary
To be optimally positioned at all times you must assume that your estate plan will need adjustments over the years. Some things take place that are out of your control and can interfere with your existing estate plan, and such an event is taking place at the end of this year. The estate tax rules that are in place right now are a result of provisions contained within the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. This act is going to expire at the end of … [Read more...] about Reminder: Estate Tax Exclusion Portability Is Temporary
Value Of Dick Clark Estate May Be Eroded Considerably
If you are not aware of the extent of the federal estate tax, the details may come as something of a shock to you. The powers that be are potentially poised to consume an enormous portion of your resources after you pass away, and as a case in point, look no further than the estate of the entertainment impresario Dick Clark. Clark passed away a very wealthy individual, with an estate that is estimated at well into the hundreds of millions of dollars. The estate tax exemption is currently $5.12 … [Read more...] about Value Of Dick Clark Estate May Be Eroded Considerably
There’s More To Generosity Than Meets The Eye
Taxes are controversial, and though most people accept that tax revenue is necessary to support our societal infrastructure, you probably don't want to be taxed at every turn, and you probably don't want to be taxed twice on the same income. With this in mind let's take a look at the federal gift tax. You may not realize that some gifts that you give to your loved ones are taxable. The reason why you don't get a bunch of IRS bills in your mailbox around the holiday season is because there is a … [Read more...] about There’s More To Generosity Than Meets The Eye
Generation Skipping Trusts Can Keep More Money In The Family
Being taxed is not something anyone particularly relishes. But when you are taxed more than once on the same money it can be especially disconcerting. This is what we are looking at with the federal gift tax and the estate tax. The possessions you have were accumulated with resources that you had left over after you paid income tax, self-employment or payroll tax, sales tax, property tax and any number of additional taxes. The same can be said of gifts. So a lot of people view the estate tax … [Read more...] about Generation Skipping Trusts Can Keep More Money In The Family
Estate Tax: Should It Be Repealed?
The subject of the estate tax is hotly debated in some circles and there are those who feel as though this federal levy should be repealed. In fact, there have been several bills introduced into the House of Representatives recently that call for a repeal of the estate tax. This tax is often called the "death tax" and when you look into it you can see why. The resources that are going to comprise your estate were accumulated after you paid taxes. If you take some of your after-tax earnings and … [Read more...] about Estate Tax: Should It Be Repealed?
Qualified Personal Residence Trusts & The Estate Tax
Many people are truly amazed when they hear about the details of the federal estate tax. For one thing, this is a tax that is only imposed on some people and who they are varies in a rather random manner. This is due to the fact that there is an estate tax exclusion, the amount of which changes regularly. At the present time it stands at $5 million, but under current laws when 2013 rolls around the estate tax exclusion will go down to just $1 million. Right now the rate of the tax is 35%, but … [Read more...] about Qualified Personal Residence Trusts & The Estate Tax
