Tag Archives: exclusion

Updated 2016 Estate Tax Exclusion Released By IRS

Since the end of the year is right around the corner, government agencies are releasing updated figures for 2016 that are relevant to people who are concerned about elder law and estate planning issues. Recently, the Internal Revenue Service released the amount of the inflation adjustment that will be applied to the federal estate tax exclusion. The exclusion is the amount that you can transfer before the estate tax would be applied. There is an unlimited marital deduction that you can use to transfer unlimited assets to your spouse tax-free, but transfers to others are potentially taxable. For the 2010 calendar year, there was no estate tax at all, because it was repealed for that one year due to provisions that were contained within the Bush era tax cuts. The estate tax was scheduled to return in 2011 with a $1 million exclusion. At the end of 2010, a piece of legislation that is now called The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 was enac


2015 Estate Tax Exclusion Increase Announced

At the end of 2010 a tax relief act was passed, and provisions within this legislative measure set the estate tax exclusion at $5 million in 2011. The credit or exclusion is the amount that you can transfer to people other than your spouse in a tax-free manner. Because of the existence of the unlimited marital deduction, you can leave any amount of property to your spouse free of the federal death tax. An inflation adjustment was applied for 2012 that set the exclusion at $5.12 million. At the end of that year, the American Taxpayer Relief Act of 2012 was enacted. This measure retained the same exclusion with ongoing inflation adjustments. Throughout 2014 we have been working with a $5.34 million federal estate tax exclusion. Because the year is rapidly coming to a close, the Internal Revenue Service has released the amount of the inflation adjustment for 2015. During the 2015 calendar year, the federal estate tax exclusion is going to be $5.43 million. Unified Exclusion To prevent pe