Is Every Estate Subject to the Estate Tax?

You may be concerned about taxes that can reduce the value of the estate that you are passing on to your loved ones. There is a federal estate tax, and in Connecticut, we have a state-level estate tax. The existence of these taxes is the bad news; the good news is that every estate is not subject to an estate tax. Federal Estate Tax Credit or Exclusion There is a federal estate tax credit or exclusion. This is the amount that you can transfer before the tax would be applied. During the rest of 2015, the federal estate tax exclusion is $5.43 million. The maximum rate that would be applied to the taxable portion of an estate on the federal level is 40 percent. If you are married, you should be aware of the fact that there is an unlimited marital deduction. You can transfer any amount of money and/or property to your spouse free of the federal estate tax. The tax-free transfers would be limited to the amount of the exclusion only when you are transferring assets to others. Connecticut St


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