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Good News on Estate Tax Exemption

The IRS recently announced the inflation adjusted figures for gift and estate tax exemption amounts for 2016.

The annual exclusion amount remains at $14,000.  That is the amount that can be gifted to US citizens each year without eroding the per person exemption amount.

The exemption amount increases from $5,430,000, to $5,450,000, or $10,900,000 for a married couple.  Thus, married couples with less than $10, 900,000 do not pay estate tax upon their deaths on assets passing to family and friends.  The $10,900,000 can also be used for lifetime gifting without incurring gift tax, which remains an advantageous strategy for affluent clients seeking to leave more to family and less to the IRS.

© 2020 Odin, Feldman & Pittleman, P.C.National Law Review, Volume V, Number 299


About this Author

John P. Dedon, Tax, Estate Planning, Attorney, Odin Feldman Pittleman, Law Firm

John Dedon is a tax lawyer with a talent for explaining the complexities of tax law in lay terms.  Working in the estate planning, asset protection and business areas for almost 30 years, John helps clients preserve assets and plan for the future with traditional planning tools, including Trusts (dynasty trusts, intentionally defective trusts, grantor retained annuity trusts), LLC and partnership entities, and cutting edge concepts such as cryonic preservation trusts.  John also works extensively in the charitable area, creating public and private charities, remainder and lead trusts...