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
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Author: Sean M. Pena
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Author: John D. Giampolo
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Author: George McGowan
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
Author: Marc J. Comer
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
Author: George McGowan
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Author: Sean M. Pena
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.