Estate Tax
The Estate Tax is a tax on your right to transfer property at your death. It consists of an accounting of everything you own or have certain interests in at the date of death. The fair market value of these items is used, not necessarily what you paid for them or what their values were when you acquired them. The total of all of these items is your “Gross Estate.” The includible property may consist of cash and securities, real estate, insurance, trusts, annuities, business interests and other assets.
In 2024, the federal estate tax ranges from 18% to 40% and generally only applies to assets over $13.61 million.
Some states also have estate taxes. So, even if you qualify for the federal estate tax exemption, you may still remain responsible for a state-level tax.
Estate tax planning attempts to reduce potential estate tax liability by utilizing planning techniques to reduce either the amount of property in the taxable estate or to minimize the valuation of the property in the taxable estate.
Gift Tax
The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether or not the donor intends the transfer to be a gift.
The gift tax applies to the transfer by gift of any type of property. You make a gift if you give property (including money), or the use of or income from property, without expecting to receive something of at least equal value in return. If you sell something at less than its full value or if you make an interest-free or reduced-interest loan, you may be making a gift.
The tax is only triggered on annual gifts above a certain amount, with anything below that amount being excluded from the tax. The annual exclusion is $18,000 for 2024. Those limits are per recipient, meaning you could give several gifts up to $18,000 to different people without triggering the gift tax or reporting requirements.
The lifetime exclusion is the total sum you can give over the course of your life. Adjusted annually for inflation, this exclusion is $13.61 million in 2024. The donor can gift up to this amount before the gift tax is applied. Annual limits still apply, though, which means the lifetime exemption applies to amounts over and above annual exclusions.
Here to Help
My goal is to help clients reach their personal goals with a minimum tax burden. I work with clients to identify and execute the most tax-efficient solutions available for their unique needs.
As a skilled listener, I ask questions and carefully evaluate the needs of my clients in order to formulate effective tax saving and asset protection strategies. I understand that the nuances of family dynamics, individual philosophies on money, business interests, and charitable goals can be complex. I advise multi-generational families, closely-held businesses, entrepreneurs, partnerships, limited liability companies, trusts, estates and family offices.
I provide practical, cost-effective and innovative guidance on all aspects of individual and estate tax planning, business succession planning, asset protection planning, risk management, and family counseling. You worked hard to get where you are. Set your goals and I will help you achieve them.
