In order to understand the gift tax, you have to absorb some background information about the federal estate tax. This levy carries a 40 percent maximum rate, so it can significantly impact your legacy if you are exposed.The good news is that most people don’t pay the tax, because there is a high credit or exclusion. This is the amount that can be transferred before the estate tax would be applied on the remainder. At the time of this writing, the exclusion is $11.58 million.You do not … [Read more...] about Gift Tax 101
If you have been very successful from a financial standpoint, you have to be concerned about the potential impact of estate taxes. Many people contend that the death tax is not fair, because your estate is comprised of resources that you have been able to retain after paying innumerable taxes throughout your life.Why should your death be a taxable event in and of itself?This a good question, but whether it is fair or not, the federal estate tax is a fact of life. The good news is that … [Read more...] about What Is Estate Tax Exclusion Portability?