Federal Estate, GST and Gift Taxes

For 2016, the Federal estate tax exemption rises $20,000 to $5,450,000. A married couple can pass up to $10,900,000 free of Federal estate tax. “Portability” between spouses means that any unused Federal estate exemption of the first spouse to die can be added to the surviving spouse’s exemption for the survivor’s gifts or estate.
However, do not abandon keeping your estate plan up to date because the combined Federal exemption for a couple is now so large: State exemptions are lower and portability does not apply to state exemptions, portability is lost if the survivor remarries, and portability does not apply to the generation-skipping transfer tax exemption.

If you have any questions regarding federal estate, GST and gift taxes, please contact Doris L. Martin, or visit our website.