Estate Tax Planning for 2013 and Later Years

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  • Estate Tax Planning for 2013 and Later Years
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Estate Tax
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Generation Skipping Tax
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Gift Tax
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Annual Gift Tax Exclusion
2013 Estate & Gift Exemption Amounts:
Estate Tax for 2013 and Later Years
Maximum rate 40%
$5 million exemption per person ($5,250,000 for 2013), indexed for inflation ($10 million per couple and $10,500,000 for 2013) and the unused exemption is portable to the surviving spouse)
$5 million GST exemption ($5,250,000 for 2013) – the unused exemption is NOT portable
Step-up in basis for qualifying estate assets (but not for IRAs)
What to Tell Your Clients
More Roth IRAs and traditional IRAs will pass estate tax free (up to $5.25 million per person / $10.5 million per couple, plus inflation increases each year). Most inherited Roth IRAs will now not only be income tax free, but also estate tax free.
You can give up to $14,000 a year to as many people as you wish, totally free of any gift tax. If you are married and your spouse consents to joining in on the gift with you (known as gift splitting), you can double the exclusion to $28,000 per year to an unlimited number of people. Unlimited direct gifts to institutions for education or medical bills can be made and do not count against the gift tax exemption.

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