Estate & Gift Tax Planning


New York Estate and Gift Tax Attorney, CPA & Enrolled Agent

Tax & Estate Planning Attorneys

Under the federal tax code, the value of property gifted to someone other than your spouse is subject to a gift tax. Depending on the value of the gift, you may be required to fill out IRS Form 709 — the United States Gift Tax Return. However, up to $14,000 in annual gift giving is exempt from the gift tax. Here, it’s important to distinguish the annual gift tax exclusion from the lifetime gift tax exemption. The annual gift tax exclusion allows you to gift up to $14,000 to family members (other than your spouse) annually without paying any taxes on it. The lifetime gift tax exemption refers to the amount you can gift to others that will be free from taxation over the course of your lifetime — though it will reduce the amount that can be given away tax-free after your death. Currently, the lifetime gift tax exemption is $5.34 million, though it’s directly tied to the federal estate tax exemption.

Understanding how to decrease your tax liability using either the annual gift-giving tax exclusion or the lifetime gift tax exemption requires creative estate and tax planning strategies.

At the Woodbury Stefans Law Group, our team of tax and estate planning attorneys has the resources and experience needed to help you reduce your tax liability from your estate, your income and your business. To learn how we can help you, contact Woodbury estate and gift tax attorneys at the Stefans Law Group today.

The TRA and Changes to the Lifetime Gift Tax Exemption

The federal estate tax exemption for 2014 is $5 million, while the tax rate for estates valued at or over $5.34 million is 40 percent. This is especially important if you own your own business or own more than one home.

Married Couples and the Federal Estate Tax Exemption

Under the TRA 2010, couples no longer need to use AB trusts or ABC trusts to pass along the federal estate tax exemption. Now, when one spouse dies before the other, TRA 2010 allows the unused portion of the deceased spouse’s estate tax exemption to be added to the surviving spouse’s estate tax exemption. Practically speaking, this means married couples can pass along up to $10.68 million to their heirs without planning, though the surviving spouse will need to file IRS Form 706.

Alternatively, in regard to generation-skipping transfer exemptions, couples who want to pass on the generation-skipping tax exemption to heirs using a generation-skipping trust will still need to use AB and ABC trust planning for their estate.

Contact Our Estate and Gift Tax Attorneys, CPA’s & Enrolled Agents at the Stefans Law Group

Understanding how to leverage the tax code to your advantage requires knowledge of the tax code, trusts, annuities, business formations and a number of other matters. At the Stefans Law Group, our tax and estate planning attorneys have helped countless individuals, families and businesses minimize their tax liability.

To learn how we can help you, contact our estate and gift tax attorneys at the Stefans Law Group today.