Quote:
Originally Posted by retiredguy123
The current estate tax limit is $13.61 million. As long as her estate is not higher than that, she can give away all of it either now or after death and there will be no taxes owed by either her estate or her heirs. If the money is given as a gift, the receiver doesn't owe any tax. Gifts are not taxable income. However, there may be capital gains consequences when sold, if the gifted assets have a taxable cost basis. I would definitely recommend that she consult with an estate planner before gifting her assets.
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Yes, $13.61 M is the estate tax exemption. But any beneficiary that is not class A will be required to pay inheritance tax. Also, you can give away the money before you pass away, you have to be aware of the Gift Tax Rule. For 2024, the annual gift tax limit is $18,000. For married couples, the combined 2024 limit is $36,000.
So, you want to avoid Estate tax, inheritance tax and gift tax. So your strategy depends on the value of your estate, and who your beneficiaries are.