The annual amount that an individual can give to another person without having to pay federal gift tax, which was up to $13,000 in 2010 and 2011, and periodically adjusted for inflation.
Avoiding probate involves using various estate planning techniques to eliminate assets from the legal probate process. Methods include jointly held property, living trusts, and lifetime gifting. It's important to note that avoiding probate does not exempt assets from federal estate or gift taxes.
The specific date when the donor's full control and ownership of a property or asset is relinquished to the recipient.
The estate tax is a levy on the total value of a decedent's estate, including all real, tangible, and intangible property, minus any liabilities. This tax is levied by the government based on the estate's fair market value at the time of death. The amount due may be reduced by applying available credits and exemptions. Comprehensive knowledge of federal and state tax laws is necessary for accurate calculation and assessment.
A federal tax imposed on the transfer of wealth through estates and gifts, calculated based on the value of a decedent's estate and lifetime gifts.
A Generation-Skipping Transfer (GST) involves the transfer of financial assets or property to a recipient who is more than a single generation removed from the transferor, potentially incurring the generation-skipping tax (GSTT).
A gift is a voluntary transfer of property or assets from one individual to another without receiving anything of value in return. This can have implications for both the donor and the recipient under tax laws.
The gift tax is a graduated excise tax levied on the donor of a gift by the federal government and most state governments, which comes into play when assets are transferred from one person to another.
A grossed-up gift is the result of adding the gift tax paid by the decedent of the estate back to the gift when it is included in the gross estate.
The lifetime exemption pertains to the total amount of gifts and estate transfers one can make without incurring federal gift or estate taxes.
The Marital Deduction is a provision in U.S. federal estate and gift tax laws allowing a surviving spouse to inherit the decedent's estate or receive gifts from the spouse tax-free, thereby deferring estate taxes until the property is transferred to the next generation.
A Potentially Exempt Transfer (PET) refers to a gift that may not be immediately subject to inheritance tax, provided the donor survives for a period of seven years after making the transfer. PETs play a significant role in estate planning and gift tax strategies.
A qualified transfer refers to any amount paid for an individual's education or medical care that is not considered a taxable gift for gift tax purposes.
A set of statutory provisions under which income arising from property that has been gifted is taxed as if it were income of the donor and not of the donee.
