Estate Tax: Citizenship Can Be a Factor

The federal estate tax is potentially applicable on asset transfers to anyone other than your spouse. It is possible to use the unlimited marital deduction to transfer any amount of property to your spouse free of the death tax. There is a gift tax that exists to stop people from giving gifts in an effort to avoid the estate tax. This unlimited marital deduction also applies to lifetime gift giving. The estate tax exclusion is $5.43 million. This is the amount you could transfer to anyone other than your spouse before the estate tax would be applied. Since we are looking at spousal relationships, we should point out the fact that the exclusion is portable between spouses. In this context, portability is a term that describes the ability of a surviving spouse to use the exclusion that was afforded to his or her deceased spouse. As a result, if you combine the respective exclusions that were allotted to each spouse, a surviving spouse would have a total exclusion of $10.86 million (usin


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s