There are multiple tax figures one must adhere to with estate and tax planning. Here are the most recent updates pertaining to estate and gift taxes:
Estate and Gift Tax Applicable Exclusion:
This amount refers to the amount of money leftover following death and needs to be passed free of federal tax. The Estate and Gift Tax Applicable Exclusion amount is $11.58 million.
Annual Gift Tax Exclusion:
This amount can be given to any individual of your choosing without using any Applicable Exclusion. Currently, the Annual Gift Tax Exclusion is set at $15,000.
Generation-Skipping Tax Exemption:
This tax allows for giving fund to grandchildren or “skip persons.” Each person has a set threshold of $11.58 million for Generation-Skipping Tax Exemptions.
State tax laws are subject to change at any time. It is important to review recent Federal Estate Tax updates and State Tax updates prior to any estate planning. State Estate Inheritance Tax is normally a smaller amount than federal taxes. It is important to consult with your estate planning attorney to determine the proper amount needed for your estate.