Estate & Gift Tax in Oakland County

Federal Estate Tax

An estate tax is a tax on the transfer of property at a person's death. Currently Michigan does not have a state estate tax, but the United States government reinstated the federal estate tax on December 17, 2010. Estate tax is calculated by adding up the fair market values of the decedent's assets and then subtracting applicable credits and deductions. As of 2013, only estates worth over $5,250,000 have to pay estate taxes. An Oakland County estate planning professional from The Offices of Stuart Lee Sherman, PC can help you avoid the federal estate tax through carefully selecting estate planning tools, including grantor-retained trusts.

Understanding Federal Gift Tax

If you give another person a gift, you may have to pay up to 40% in federal tax on it. In 2013, the gift allowance was raised to $14,000. This means that you can give another person $14,000 without being taxed. If you are married, you and your spouse are able to give one person $28,000 without the money being taxed. Certain gifts, such as college tuition, are not taxed. Additionally, gifts to spouses, charitable organizations and political organizations do not face taxation. There is a lifetime limit on gifts, which is $5.25 million as of 2013; if you exceed the limit, the gift tax will be imposed.

We can provide the skilled guidance you need!

If you are interested in planning for your loved ones, we can help you leave them with the most inheritance. With a LL.M in taxation, Stuart Lee Sherman is well-equipped to assist you with planning to avoid costly taxes. For more information about our client-centered approach, contact the Oakland County estate planning splecialist from Stuart Lee Sherman, P.C. or take advantage of our free case evaluation to learn about your options.

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