Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Taxpayers Can Expect Bigger Estate Tax Credits in 2014
Author: Scarinci Hollenbeck, LLC
Date: January 31, 2014
Key Contacts
Back
Individuals and families with a high net worth often have to pay a significant amount of taxes on their estate under U.S. tax law. However, there are bigger estate tax credits on the way for estates in 2014, according to the Motley Fool.
For example, the unified estate and gift tax exclusion amount is expected to increase from $5.25 million to $5.34 million. Additionally, the federal foreign earned income exclusion edged higher to $99,200, compared to $97,600 in 2013. General annual gift exclusions will have a new cap of $14,000, a significant jump from the $10,000 exclusion seen in 2000.
By taking advantage of these credits and deductions, individuals and families can reduce their tax bill. There are also other ways to lower estate taxes, including:
Create an Intentionally Defective Grantor Trust: According to Forbes, an IDGT is a trust that allows transferred assets to be moved from an estate for estate and gift tax purposes, but not for income tax purposes.
Married couples should take advantage of both exemptions: Each U.S. citizen is entitled to an estate tax exemption. Married couples are able to take advantage of both exemptions, which can reduce their estate tax bills, according to EstatePlanning.com. This may seem like a simple step to take, but many taxpayers may not be aware they are afforded both exemptions.
Give tax-free gifts: Each year, U.S. tax law allows people to give tax-free gifts. These can be up to $13,000 – $26,000 if married – to as many recipients as a taxpayer wishes. By completing this step, people are able to reduce their estate tax bill.
- Practices: Sophisticated Estate Planning & Wealth Preservation, Tax and Trusts & Estates, Estate & Trust Litigation, Real Property Tax Strategies
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Smart Contract Legal Issues: Drafting Agreements for Blockchain
Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]
Author: Bryce S. Robins
Are Stay Interviews the Key to Retaining Top Talent?
Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
Author: Angela A. Turiano
Why Secured Transactions Are Important
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.