What Are Some Tax Consequences Of Estate Planning?
Many state and federal tax regulations impact estate planning, but a carefully crafted estate plan can reduce the tax burden on an estate and the survivors. Both state and federal rules and regulations are extremely complex, and the advice of an estate planning attorney to maximize tax savings is highly recommended, particularly if an estate is likely to be substantial.
Some states have inheritance tax, and recipients under a will or trust also may face state and federal income tax consequences.
In 2014, Congress announced new estate and gift tax limits for 2015. The federal estate tax exemption rose to $5.43 million per person. The maximum estate tax rate is 40% for estates larger than $5.43 million ($10.86 million for married couples). The annual gift exclusion amount stays at $14,000 from the 2014 rate. Additionally, since January 1, 2011, estates of decedents survived by spouses have been allowed to elect to pass off the decedent’s unused exemption to the surviving spouse. This election may be made on a timely filed estate tax return for the decedent with a surviving spouse.
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I am Charles M. Hall, and I provide knowledgeable legal advice and guidance to clients in Atlanta and the surrounding areas. To discuss your estate planning needs with me, call my firm, Charles M. Hall, P.C., at 404-865-1966 or reach out online.