On October 31, the Internal Revenue Service published the annual inflation adjustments for two important taxes in the estate planning arena. The federal estate tax exclusion amount has increased to $5,340,000. Thus, if an individual dies in 2014, the estate would need to exceed $5,340,000 (assuming no lifetime gifts) for a federal estate tax to be due. Remember, many states have a state estate tax so there may still be estate taxes owed even if the estate is less than the federal exclusion amount. Both Arizona and New Mexico do not have state estate taxes.
The annual gift tax exclusion continues to be $14,000 per person for 2014. An individual may give up to $14,000 to as many individuals as they choose without the need of filing a gift tax return or paying a gift tax.
About Morris Hall:
At Morris Hall, we have focused our legal practice on estate planning for over 40 years. Along with estate planning, our attorneys help clients and their families with matters of probate, trust administration, wills, power of attorneys, business planning, succession planning, legacy planning, charitable gifting and other important legal aspects. We also have divisions in financial, real estate and accounting to help you incorporate all of your planning together, ensuring that everything works perfectly for your needs and situation. Our Arizona offices are located in Phoenix, Mesa, Scottsdale, Cave Creek, Tucson, Prescott, Flagstaff and Arrowhead. Our New Mexico offices are located in Albuquerque, Las Cruces and Santa Fe. Contact us today at 888.222.1328 to schedule an appointment!
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice, please contact an attorney in your community who can assess the specifics of your situation.