Estate and Gift Tax Basics -2022 Edition

Attorney Dan Krause talks about the estate tax and the gift tax, two related taxes that have a lot to do with estate planning.
The good news is that 99% of people will never pay any estate tax or gift tax. The bad news is that those who do, it is a heavy tax.
The estate tax and the gift tax are related. You can give either at your death or during life $12.06m without paying a gift or estate tax. On amounts over that, the tax rate is 40%.
The estate/gift tax exempt amount is scheduled to go down in 2026 to about $6m. Cost of living changes between now and then will tell us exactly how much it will be.
Of course, all this could change if congress acts and the President signs a new estate tax law.

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[boyboy-xerx]

Very nice explanation. Very helpful. Thank you.

[marifreakinganneeats]

currently taking a tax class. thank you for your excellent explanation of this. very clear, helpful, current, and straightforward :)

[monicasalvador]

I’m currently studying for the CFP via Estate Planning module and I really needed this! ❤

[aemsiw]

Is it better for a parent to gift a property to a adult child directly (via quit claim deed from "parent's name" to "child's name") or is it better for a parent to put the property in an LLC and then transfer the ownership of the LLC to the adult child?