When preparing or updating your estate plan, you will need to have a basic understanding of the different types of taxes that can affect your estate - gift taxes, estate taxes, inheritance taxes, generation skipping transfer (or GST) taxes, and income taxes.
1. Federal Estate Tax exemption now permanently increased so no tax for Estates under $5,340,000., and will be adjusted annually for inflation. However, New Jersey taxes estates over $675,000. 2. Gifts permitted without Federal Estate & Gift tax was increased to $14,000 per person. 3. We recommend Self- Proving Wills since witnesses often move or pass away
This Chart Shows How the Federal Estate Exemption Has Changed Since 1997
The exemption from federal estate taxes has gradually increased over the years while the estate tax rate has gradually decreased. Here you will find a chart that shows the increases in the exemption and decreases in the tax rate from 1997 through 2015.
Edith Windsor sued the United States Government after being denied federal estate tax exemption as a surviving spouse - an exemption that cost her over $363k in federal taxes. June 26, 2013, the U.S. Supreme Court ruled that section three of the "Defense of Marriage Act" (DOMA) is unconstitutional and that the federal government cannot discriminate against married lesbian and gay couples for the purposes of determining federal benefits and protections. -source aclu.org