The Estate Tax is a tax on the value of your property transfered to your hiers upon your death.  The federal government allows every person to give away, either through lifetime gifts or upon death a certain maximum dollar value of property without being taxed. This is known as your Lifetime Exemption.  The maximum amount of the lifetime exemption does change from time to time as determined by Congress.  Any assets you own at your death that amount to more than lifetime exemption in place are then taxed at a progressive Estate Tax.

Certain transfers are not counted toward the lifetime exemption, such as a gifts of up to certain amounts made by you to any person per year, or gifts given to pay for tuition or medical expenses.

The Internal Revenue Code also allows married persons to gift, or leave at death, certain property to their spouse which may qualify for marital deductions, which may also be exempt from tax. 

The estate tax laws can be complex and also vary from year to year in terms of the amount of available deductions or exemptions.  Therefore, it is highly recommended that individuals or couples seek the advice of a qualified estate planning attorney to discuss which estate planning tools would best suit their particular situation.  The attorney can recommend ways you can not only achieve your goals for your property upon death, but also help you to minimize estate tax liability to the fullest extent allowed under the applicable laws. 

Estate Planning Sub-categories