Wednesday, October 26, 2016

IRS Announces Estate and Gift Tax Exemptions for 2017

The IRS has finally released information on federal estate and gift tax exemptions for 2017.  

Individuals will have a federal estate tax exemption of $5.49 million (less lifetime taxable gifts) beginning in 2017.  The federal estate tax exemption applies both to lifetime taxable gifts (those exceeding the annual exclusion amount discussed below) and gifts at death -- either outright or in trust.  So, an individual who makes lifetime taxable gifts of $1.
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Sunday, September 25, 2016

529 Accounts

Frequently clients inquire about the best ways to either make gifts to grandchildren during their lifetime or leave a small gift to their grandchildren at their death.  One way to accomplish that gift is to leave money to a 529 Account, named for the Internal Revenue Code Section allowing for the tax favored status of such account. 

A 529 Account is a savings account that is invested, income tax free, for the purpose of funding the named beneficiary‚Äôs education.  The deduction does not provide any income tax benefits for purposes of your federal income taxes, but Missouri donors may qualify for a deduction for purposes of their state income taxes.

If you fund the 529 Account during your lifetime, annual gifts of less than $14,000 per donee ($28,000 per donee for a married couple) qualify for the annual exclusion for the gift tax.
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