With tax season in full swing, we hope this chart and information helps you navigate through your estate tax planning in 2014.
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%.
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.
Do You Need to Speak With an Experienced Dallas Tax Planning Lawyer?
If you need to speak to an experienced tax planning lawyer please contact us online or call our Dallas office directly at 214.559.7202. We help clients throughout the Dallas area with all of their tax planning needs and look forward to helping you.