• Dollar pushes lower versus. rivals

    The dollar tucked lower from the other majors currencies on Wednesday, regardless of the discharge of upbeat U.S. housing sector data as traders were starting ...

    by : April 29, 2017
  • Oil gets near 17-month highs

    Oil prices rose for that 4th session consecutively on Wednesday, as market players anticipated fresh weekly info on U.S. stockpiles of crude and delicate products. Oil ...

    by : April 19, 2017
  • Dollar retreats from 14-year high,

    The dollar required a breather on Wednesday after reaching a 14-year high the day before, as the Swedish crown chalked up its greatest increase in ...

    by : April 9, 2017
  • Foreign currency markets mixed on

    The dollar was lower slightly from the yen and also the euro today, as some investors snagged profits on recent gains within the greenback. The dollar/yen ...

    by : March 29, 2017
  • Kremlin states just about all

    The Kremlin stated on Wednesday just about all communications channels between Russia and also the U . s . States happen to be frozen however ...

    by : March 19, 2017

2014 Estate And Gift Tax Update

2014 Estate And Gift Tax Update


2014 Estate And Gift Tax Update

The fiscal cliff drama heading into the start of 2013 fortunately was not repeated as the calendar turned to 2014.  Having said that, as we now start 2014, it is important to highlight the following major estate and gift tax laws and changes made in 2014:

  1. The estate, gift and generation skipping transfer (“GST”) tax applicable exclusion amount has increased from $5.25 million in 2013 to $5.34 million in 2014.  This means a husband and wife with proper planning could transfer $10.68 million estate, gift and GST tax free to their grandchildren.
  2. The estate, gift and GST tax rate remains the same at 40%. 
  3. New York and New Jersey state exclusion amounts remain unchanged.  The New York estate tax exclusion amount is $1 million and the New Jersey exclusion amount is $675,000.  As the disparity between the federal exclusion amount and the state exclusion amount increases, the need to carefully plan to not trigger unnecessary state estate taxes, grows as well. 
  4. The gift tax annual exclusion remains at $14,000.
  5. Portability of the federal exclusion amount is permanent, meaning, the unused exclusion of the first deceased spouse may be used by the surviving spouse at his or her death.  For many reasons, including the fact that GST exclusions and state exclusions are not portable, it is critical to properly plan your estate to ensure maximum tax savings are achieved.
  6. The gift tax annual exclusion to a non-citizen spouse has been increased from $143,000 to $145,000.  While gifts between spouses are unlimited if the donee spouse is a United States citizen, there are restrictions when the donee spouse is not a United States citizen.

Jermaine

Related Posts
Leave a reply