Summary of 2015 Estate and Gift Tax Law Changes
Compared to five years ago federal and state estate and gift taxes seem moderately stable and unchanging. Congress and Florida legislatures look for tax law changes to raise revenue though and thus proper care should be taken to understanding the current status of our tax law. What changes can you expect in 2015?
Estate Tax
- the federal estate tax exemption has increased from 5.34 million to 5.43 million in 2015. For married couples that is doubled to 10.86 million dollars.
- The maximum estate tax rate has continued to be 40%
- Florida continues to have no state estate tax in 2015.
Gift Tax
- the federal gift tax exemption has ALSO increased from 5.34 million to 5.43 million in 2015. For married couples that is doubled to 10.86 million dollars.
- The maximum gift rate is still 40%.
- The federal gift tax annual exclusion amount for 2015 continues to be $14,000 which is doubled for married couples.
- The federal gift tax annual exclusion also is indexed to inflation.
The federal estate and gift taxes continue to have the same rate and the same exemption amounts. Thus upon death a Florida estate can expect that the estate tax exclusion wil be effectively reduced by any exclusion previously used to make lifetime gifts.
Generation Skipping Transfer Tax (GST Tax)
- the federal GST tax is a tax assessed on transfers during lifetime or at death to or for benefit of remote descendents which means grandchildren and anything more remote than that – see how the first generation, your children was skipped?
- the GST rate has jumped by the same bounds as the estate and gift tax from 5.34 million to 5.43 million.
- The maximum rate remains at 40%.
Tax on Net Investment Income
- A 3.8% net investment income tax continues to be imposed on the unearned income of estates, individuals and trusts that have income over 250,000 dollars jointly or $200,000 for singles.
- What is unearned income? Think interest, dividends, non-qualified annuities, royalties, rents, capital gains, and other passive income.
Palm Beach Probate litigators know tax consequences and are prepared in utilizing exemptions and exclusions to minimize the costs on estates, and to maximize the inheritance of beneficiaries. Do you know the tax code and how it effects inheriance?