Estate and Gift Tax figures are important in considering estate planning in Owings Mills, Maryland. Read the information below on these important figures and contact us for more information on how this applies to your situation.
Estate and Gift Tax Applicable Exclusion:
The amount that can be passed free of federal tax. Whatever amount is used during lifetime is no longer available for use to pass assets at death. The Estate and Gift Tax Applicable Exclusion is currently $12.92 million, per person with a 40% estate tax above the exemption.
Annual Gift Tax Exclusion:
The amount that can be given to each person you want without using any Applicable Exclusion. The Annual Gift Tax Exclusion is currently $17,000.
Generation-Skipping Tax Exemption:
This allows for giving to people who are grandchildren or other “skip persons.” It may also be used as a sophisticated way of avoiding Federal estate tax at the death of a child. Each person currently has $12.92 million of Generation-Skipping Tax Exemption.
State Estate Tax:
In addition to the Federal Estate Tax, many states have a State Estate or Inheritance Tax. State Estate and Inheritance Tax may apply at a much lower level than the federal tax. It may apply when a person dies when resident in or owning property in any of the many states with such a tax. In Maryland, the current exemption is $5 million. Anything above the exemption is taxed at 16%.
Gifts that you make during your lifetime may be subject to estate and gift tax in the state of Maryland. We can help you with learning what’s important to your specific situation. Our attorney Richard L. Gershberg is happy to assist you with learning your options so that you can properly plan your estate and prepare for your future in any eventuality. Our number is 410-654-3880 and our team is here to help you.