Estate and Gift Tax Figures

Mackay Dressler Law Firm helps Petaluma families, property owners, and business owners understand how estate and gift tax figures may affect their long-term planning decisions. From our office on Petaluma Boulevard North, our firm guides clients throughout Sonoma County with federal estate tax exemptions, gift tax exclusions, lifetime gifting considerations, and planning strategies designed to help preserve wealth for future generations.

FEDERAL

Estate and Gift Tax Applicable Exclusion:
The amount that can be passed free of federal tax. Whatever amount is used during lifetime is no longer available for use to pass assets at death. The Estate and Gift Tax Applicable Exclusion is currently $15 million.

Annual Gift Tax Exclusion:
The amount that can be given to each person you want without using any Applicable Exclusion. The Annual Gift Tax Exclusion is currently $19,000.

Generation-Skipping Tax Exemption:
This allows for giving to people who are grandchildren or other “skip persons.” It may also be used as a sophisticated way of avoiding Federal estate tax at the death of a child. Each person currently has $15 million of Generation-Skipping Tax Exemption.

STATE

State Estate Tax:
In addition to the Federal Estate Tax, many states have a State Estate or Inheritance Tax. State Estate and Inheritance Tax may apply at a much lower level than the federal tax. It may apply when a person dies while resident in or owning property in any of the many states with such a tax. In California, there is no state-level estate or inheritance tax.

Read our Frequently Asked Questions about Estate Tax by clicking here.