2013 & 2014 Estate, Gift & Generation-Skipping Tax Exemptions & Rates

With tax season in full swing, we hope this chart and information helps you navigate through your estate tax planning in 2014.

Estate Tax:

The amount a person can pass on free from federal estate tax is $5,340,000. They are able to pass this money on during their life or at their death. If that amount is exceeded, either that person or their heirs will owe a tax of up to 40%.

Gift Tax:

The amount of money that can be given to any person each year that’s excluded from the gift tax is $14,000, per person per year.

Gifts excluded from taxes:

  • Gifts to a charity.
  • Gifts to a political organization.
  • Gifts to a spouse.
  • Gifts of educational expenses. (You must make direct payment to institution)
  • Gifts of medical expenses. (You must make direct payment to medical facility)


Generation-Skipping Transfer Tax:

The generation-skipping transfer (GST) tax is a tax on property that is passed from a grandparent to a grandchild (or great-grandchild) in a Will or trust. If property is passed on to an unrelated individual, that person must be more than 37.5 years younger.


For additional help understanding these exemptions and rates, contact a qualified estate planning attorney.

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