ph: (310) 463-6845
fax: (877) 817-5877
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The gift tax exemption for one who dies in the year 2016 is $5.45 million per individual, up from $5.43 million in 2015. That means an individual can leave $5.45 million to heirs and pay no federal estate or gift tax. A married couple will be able to shield $10.9 million from federal estate and gift taxes!
The gift tax exemption applies to thevalue of the estate - meaning the gross estate reduced by allowable estate tax credits and deductions. If this "value" does not exceed $5,340,000 (or whatever the exemption amount is for the year of the death), then the estate will pass to the heirs free from federal estate taxes.
A Historical Look at The Estate Tax Exemption
Year Estate Tax Exemption
1997 $600,000
2001 $675,000
2002 $1,000,000
2004 $1,500,000
2006 $2,000,000
2009 $3,500,000
2011 $5,000,000
2016 $5,450,000
*Please note that State and Federal Tax Laws change frequently. Therefore, an update to your estate plan may be needed depending of the size of your estate the estate tax exemption.
ph: (310) 463-6845
fax: (877) 817-5877
sp