Estate & Gift Tax
The U.S. Unified Federal Estate and Gift Tax is a tax imposed on the transfer of wealth, by gift or upon death, between one generation and the next, and in some cases, the estate or gift tax can be imposed where one's spouse is a recipient of a gift or inheritance, and where he or she is a non-U.S. citizen.
In 2009, the maximum applicable exclusion amount that can be passed upon a person's death to his or her family without tax is $3,500,000 in net value. An estate tax of up to 45% is imposed on estates larger than $3,500,000. Any such taxes imposed on a large estate must be paid in cash within 9 months after the date of death.
It is widely anticipated that the U.S. Congress will debate and possibly change estate tax laws before the end of 2009. If no changes are made, there will be no estate tax in 2010, and the maximum applicable exclusion amount for 2011 and later will be reduced to only $1,000,000. A person can gift up to $13,000 per year to each of any number of individuals without being liable for a gift tax. A married couple can gift up to $26,000 per person per year without gift tax. For gifts of cash or any asset which is greater in value than $13,000 a gift tax is imposed on the grantor, and the grantor must utilize a portion of his or her $1,000,000 maximum lifetime gift tax exclusion. The recipient of the gift pays no income tax or gift tax.
For the present there is no estate tax in the State of California.
- Areas of Practice
- Revocable Living Trust
- Living Wills
- Durable Power of Attorney
- Irrevocable Life Insurance
- Charitable Remainder Trust
- Tax Planning
- Estate & Gift Tax
- Advanced Estate Planning
- Private Foundation
- Trust Administration
- Probate & Trust Litigation
- Business Succession Planning
- Asset Protection
- Corporation
- Limited Liability Company