Estate and gift tax planning
Although it is not possible to take it with you, with careful thought and astute planning it is possible to provide your heirs, loved ones, and friends with a significant portion of your wealth. This chapter discusses the estate tax, the gift tax, and the generation-skipping transfer tax. The chapter also contains some estate planning ideas and techniques that may help you in making your plans for the future.
Because both the tax laws and your goals and expectations constantly change as you go through life, you should periodically review your estate and gift tax plan. A review will help you (1) discover how your objectives may have changed; (2) assess whether your plan can still achieve your objectives; and (3) determine how legislative changes may affect existing plans and whether you can now accomplish your goals more effectively.
This chapter is intended as an introduction to estate and gift tax planning. You should seek professional advice, especially if your financial or family situation is complicated, if you own interests in closely held corporations or other illiquid assets, or if your spouse is not a U.S. citizen.
Table 44-1. Estate, Gift, and Generation-Skipping Transfer (GST) Tax Rates and Unified Credit
|Exemption Amount Calendar Year|
|Estate, Gift, and GST Tax Exemption|
|Highest Estate, Gift, and GST Tax Rates|
|$5.34 million for estate, gift, and GST tax|
|Estate, gift, and GST tax at 40%|