Under the federal tax law, the amount of each person’s federal estate and gift tax exemption, combined, is $11.58 million in 2020 (and scheduled to increase annually for inflation though 2025). This exemption amount applies to the total taxable gifts made during an individual’s lifetime and the value of property transferred at death to someone other than a spouse or charity. Once the gifts combined with transfers at death exceed $11.58 million, a federal tax of 40% will be imposed on the amount exceeding $11.58 million.
Originally published in Lloyd Harbor Life - February 2020.
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