What is Estate Tax?

All property, no matter the form of ownership, (and certain powers) that a person has at the time of his/her death is subject to the federal estate tax. Click this link for articles and answers to FAQs on all tax topics.

→ Read More

Relationship Between Federal Estate Tax and Federal Gift Tax

Unlike most tax structures, the estate tax and gift tax are unified – integrated – into one tax system. The federal estate and gift tax impose a tax on transferring assets: one tax catches transfers made during your life — the gift tax, the other catches transfers at death — the estate tax. Transfers while you were alive and at your death are combined and subject to one progressive tax. The rates are the same for both taxes.

→ Read More

What is the Unified Tax Credit? How Does it Change Federal Gift and Estate Taxes?

A tax credit can reduce or eliminate your tax obligation. One such credit is the unified tax credit, so named because federal Gift and Estate Taxes are integrated into one unified tax system. The extent of the benefit provided by the unified tax credit depends on the tax year in which you intend to use the tax credit. Recent changes in law have altered the unified tax credit, so consult with a tax attorney in order to appropriately claim it.

→ Read More

The Federal Generation Skipping Transfer Tax or GST

Generation-skipping transfer (GST) tax imposed on gifts or bequests made directly to grandchildren or great-grandchildren instead of passing to the next generation. Basically, the tax skips a generation. The GST exemption amount is the same as the gift and estate tax exemption amount and is indexed for inflation.

→ Read More

Estate Taxes & Death Taxes

All states impose some form of tax on the transfer of assets upon death – this is known as death tax. The form and amount of this tax varies widely per state: Some states tax the value of the decedent’s estate; others impose a tax on those who inherit the assets of the estate.

→ Read More