Tag Archives: gains

What Is Capital Gains Tax?

Taxation may be a major concern for you when you are devising an estate plan, and rightly so. It can seem as though you have paid enough taxes throughout your life, and your estate is comprised of assets that you have left after paying these taxes. However, whether it is fair or not, there are taxes on asset transfers. There is a federal estate tax, and it carries a 40 percent maximum rate. The federal estate tax exclusion is $5.34 million in 2014. This is the amount that you can transfer tax-free to people other than your spouse. Because of the unlimited marital deduction, you can transfer unlimited assets to your spouse free of taxation. We practice law in the state of Connecticut. In Connecticut there is a state-level estate tax. The exclusion for the Connecticut state estate tax is just $2 million, and the top rate is 12 percent. Since this exclusion is considerably lower, you could be exposed to the Connecticut tax even if you are exempt from the federal estate tax. If you are ex