What is the most that can be given with no estate tax?
Transferring money from one estate to the next can actually cause a fair portion of the estate to be lost, but only if it is big enough. The federal taxes do not kick in until you hit a certain level, which changes slightly every year.
The numbers for 2016 were released late last year, and they show that the gift tax exemption is now going to be $5.45 for each person. This is a jump, though not a large one. In 2015, the maximum limit was $5.43 for each individual.
It’s important to note that the “per person” stipulation does look at a married couple as two people, not a single entity. This means that the true max for a married couple is twice that, sitting at $10.9 million.
There is also an annual gift exclusion to be considered, and it is $14,000. That’s the same as it was in 2015, so there’s no change to remember on that front.
It’s very important for people to consider these taxes when deciding what to do with an estate, as the best option may not be simply to leave all of the money to one person and tell him or her to do with it as he or she pleases. This is often why people look for different tactics they can use to spread money out and get around taxes, such as putting the money in certain types of trusts.
If you’re trying to figure out your estate plan in Florida, remember to think about the legal side of the process and what’s best for your family, monetarily speaking.
Source: Forbes, “IRS Announces 2016 Estate And Gift Tax Limits: The $10.9 Million Tax Break,” Ashlea Ebeling, accessed Jan. 26, 2016