Any person with an estate above the exclusion amount below which corresponds with the year of death, requires a more advanced form of Estate Planning. If you are married the exclusion amount is double what is stated below with proper estate planning. A federal estate tax return (Form 706) is required for any estate whose estate and lifetime taxable gifts exceed the following exclusion amount. The tax an estate above the Exclusion Amount can be as high as 55%.
| Year |
"Applicable Exclusion Amount" |
Lowest Gift Tax Rate (after exclusion) |
Lowest Estate Tax Rate (after
exclusion) |
Highest Tax Rate |
| Gift Tax |
Estate Tax Exclusion |
| 2009 |
$1,00,000 |
$3,500,000 |
41% |
45% |
45% |
| 2010 |
$1,00,000 |
Repealed |
Unlimited |
0% |
0% |
| 2011 |
$1,00,000 |
$1,00,000 |
41% |
41% |
55% |
With an Advanced form of Estate Planning estates which exceed the exclusion amount can be distributed without any federal estate tax. Advanced estate planning techniques focus primarily on reducing estate taxes. Depending on your financial and family situation, advanced estate planning techniques and tools will be utilized when planning for your estate.
Some Advanced Estate Planning Tools Include:
- Irrevocable Life Insurance Trusts (ILIT)
- Qualified Personal Residence Trusts (QPRT)
- Charitable Remainder Trusts
- Grantor Retained Trusts(New Text)
- Intentionally Defective Trusts
- Tax Free Gifts (Currently up $13,000 a year)
- College Savings Plans
- Dynasty Trusts
- Family Limited Partnership (FLP)
- Family Limited Liability Company (FLLC)
For a free initial consultation please call Banafshe Law Firm, PC today at (888) LAW-9991 (888-529-9991) or complete the contact us and we will call you back.
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