Estate and Gift Tax -The estate tax exclusion amount for deaths in 2013 is $5.25 million. If you exceed the limit, you (or your heirs) will owe tax of up to 40%. Spouses may take a unlimited deduction from estate and gift tax that postpones the tax on assets inherited from each other until the second spouse dies. This marital deduction, as it is called, applies only if the inheriting spouse is a U.S. citizen. Widows and widowers can add any unused exclusion of the spouse who died most recently to their own. This enables them together to transfer up to $10.5. Tax geeks call this portability. We can each give another person $14,000 per year without it counting against the lifetime exemption.
Posted on: Tue, 02 Jul 2013 02:32:12 +0000
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