Federal Gift, Estate and Generation SkippingTax Exemption Levels
Federal Gift, Estate and Generation Skipping Tax Exemption Levels
|
Year |
Estate Tax Exemption |
Generation Skipping Tax Exemption |
Lifetime Gift Tax Exemption |
Max Estate & |
|
2009 |
$3.5 million |
$3.5 million |
$1 million |
45% |
|
2010 |
Estate Tax suspended |
GST Tax suspended |
$1 million |
Rate equals top income tax rate |
|
2011 |
$5 million per person |
$5 million per person |
$5 million per person |
35% |
|
2012 |
$5.12 million per person |
$5.12 million per person |
$5.12 million per person |
35% |
|
2013* |
$5.25 million per person |
$5.25 million per person |
$5.25 million per person |
top rate of 40% |
Gift Tax Annual Exclusion
Gift tax is a tax on assets passed from one individual to another during life. The annual amount excluded from gift tax is linked to the inflation rate and increases periodically to the nearest $1,000. The gift tax annual exclusion amount for gifts from one individual to another individual (not charity) in 2013 is $14,000 per person per donee. This means that you may give up to $14,000 to each of any number of individuals in 2013 without paying tax on those gifts. As an example, a couple with two children may each give $14,000 to each child, for a total of $56,000 without paying any gift tax (2 people x 2 children x $14,000 each = $56,000). A lifetime gift tax exemption may be used for gifts above the $14,000 annual amount.
You can learn more about estate, gift and income taxes and charitable deductions, and also read IRS Publication 950 Introduction to Gift and Estate Taxes at http://www.irs.gov/ .
This web page does not provide legal or financial advice, nor is it a comprehensive review of the topic. You should consult your legal and financial advisors and Clarkson University before making or planning your gift. (5/2013)
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