Estate Taxes: Five Things You Need to Know

There are some misconceptions out there about estate taxes. In this blog post, we will provide you with the five essential facts about death taxes that everyone should understand. Federal Estate Tax We have an estate tax on the federal level that is applicable in all 50 states. There is a certain amount that can be transferred before the estate tax would be applied. This is called the credit, exemption, or exclusion. The exclusion is inflation-adjusted each year. For the rest of 2016, the federal estate tax exclusion stands at $5.45 million. The top rate of the estate tax is 40 percent, so your legacy can be significantly impacted if the estate tax is applied to the taxable portion of your estate. Gift Tax If you have not looked into the subject, you wouldn t worry too much about the estate tax, because you may think that you could just give gifts to your loved ones to avoid the tax. Unfortunately, this is not possible, because there is also a gift tax in place. The exclusion is a uni


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