The American Taxpayer Relief Act of 2013 solidified the federal estate tax for the foreseeable future and adopted tax rates that are higher than those that were previously in effect. The maximum rate is now 40% and $5,340,000 of transfers are exempt from tax. In addition, any portion of the $5,340,000 exemption unused by the estate of a first-to-die spouse may be used as an additional exempt amount by the surviving spouse for both gift and estate tax purposes if a proper election is made.
The donor is responsible for paying the gift tax. If a trust or estate makes the gift, the individual beneficiaries are considered the donors. If the donor does not pay, the recipient has to pay the tax.
|Taxable Gift or Estate Tax||Tentative Tax|
|From||To||Tax||Rate on Excess|
Sample Questions 1 - 5
TaxesThe lifetime maximum for gift taxes is $5.12 million. However, it could drop to $1 million. Here's what that will mean.
Financial AdvisorFinancial advisory clients may have more tax issues as their financial plans become more complicated. Here are a few of the major tax concerns clients face.
TaxesChanges to federal legislation will affect how your assets are treated once you're gone - be prepared.
Financial AdvisorA quick estate planning guide for high-net-worth individuals to help minimize taxes and costs, protect assets and plan for care.
Financial AdvisorThe Treasury department is aiming to close a loophole that would result in higher estate and gift taxes for some wealthy business owners.
TaxesTaxes are often a deterrent from investing and saving. These financial practices will bring you no tax grief.
Financial AdvisorAs rules and exemptions tied to the estate tax change, so should your estate plan. Here's why updating it is so important.
TaxesTax liability is the amount of money a person or entity owes to the government as the result of a taxable event.
Financial AdvisorLearn about three federal income tax facts that most Americans may not know from one of the most trusted financial resources on the Web.
TaxesWhen it comes to taxes, the debate is endless on who pays what, especially in Congress. With no new initiatives in sight, let's take a look at who is paying now.