I often get asked about the current status of the federal estate and gift tax. Here is a nice summary I just ran across, from Norman Rogers posting at the American Thinker:
“Since a legislative compromise in 2013, the death tax is 40% on the amount of the estate over $5 million dollars. The $5 million is indexed for inflation and is currently about $5.4 million. You can’t get out of death tax by giving your money away to your children before you die. In that case there is a gift tax. The gift tax and the death tax share the same $5 million limit. There is no gift tax or death tax for transfers of money between spouses. By proper structuring of their estates, a married couple can leave up to $10 million (indexed for inflation) without death tax to their children, or anyone else for that matter. In addition you can give up to $14,000 in any year (also indexed for inflation), to anyone, without it being deducted from your $5 million lifetime allowance. A married couple can give away $28,000 each year to as many people as they please.”
The Scheiderer Law Firm, LC, founded by Bryan Scheiderer, Attorney at Law, is located in Moberly, Randolph County, Missouri and serves clients in all of North and Central Missouri.