Quote:
Originally Posted by ronda
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.
|
I don't understand your post. The term "inheritance tax" usually refers to a state tax, not a Federal tax. Florida does not have an inheritance tax. If you are referring to the Federal tax, there is no such thing as a "gift tax" and there is no such thing as an '"estate tax". It is called the "unified gift and estate tax" which is a combined single tax that has a lifetime exclusion of $13.61 million. So, if you gift more than $18,000 to an individual in a tax year, you do not owe a gift tax because there is no tax called a gift tax. The only time you owe a Federal tax is when you exceed the lifetime exclusion of $13.61 million for the "unified gift and estate tax". Until then, you do not owe any Federal tax.