Questions About Estate Tax

2016 Gift and Estate Tax Limits

by Rania Combs

The IRS recently announced the estate and gift tax limits for 2016.

In 2016, the exemption amount for individuals increased from $5.43 million to $5.45 million, which means that individuals can leave that much to their heirs with no estate tax or gift tax liability.

Married couples can shield double that amount from estate and gift taxes with a portability election on the estate tax return of the first spouse to die.

The annual gift tax exclusion, the amount an individual can give another person without incurring any gift tax liability, remains at $14,000.

Federal estate and gift tax exemptions are indexed for inflation.

About Rania

Rania graduated magna cum laude from South Texas College of Law Houston and is the founder of Rania Combs Law, PLLC. She has been licensed to practice law since 1994 and enjoys helping clients in Texas and North Carolina create estate plans that give them peace of mind.

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