Law Offices of Carol Young Adams
Estate Planning ~ Probate ~ Trust Administration

    The estate and gift taxes are actually transfer taxes that are paid on the transfer of assets from one person to another.  The estate tax is a tax that is imposed when property above a certain value passes from one person to another at death.  Under the current law, the amount a person can pass before paying an estate tax is $5,340,000.

    The gift tax is a corollary of the estate tax.  It would make little sense to have an estate tax that could simply be avoided by giving away all of one’s property immediately prior to death.  As such, during one’s lifetime, a person may make up to $5,340,000 of such gifts before any such gift tax will actually be paid.  Each person is also allowed to give, gift tax free, up to $14,000 per year to any one individual.

    If you are considering making gifts in excess of $14,000 per year, you will need the advice of an estate planning attorney to make sure that your estate is not subject to an estate tax burden which could have been avoided with some proper planning.  If that is the case, please contact me so I can help you.


Estate and Gift Taxes