Most estates are exempt from federal estate tax and are not required to file a Federal Estate Tax Return on Form 706 or pay any Federal Estate Tax. The current (2017) exemption amount is an inflation-adjusted 5,490,000. A married couple can shield up to double that amount (i.e., $10,980,000) in transfers by careful planning. The Republican Congress has introduced bills to repeal the Federal Estate Tax (House: H.R. 631, 115th Cong., 1st Sess. (Jan. 24, 2017); Senate: S. 205, 115th Cong., 1st Sess. (Jan. 24, 2017)), but there is no assurance that such repeal legislation will ever become law. The federal estate tax is the “grand-daddy” of all taxes, as the applicable current tax rate starts at 40%.
At Drake, Hileman & Davis we work hard to reduce or eliminate the federal estate tax burden of our clients through careful lifetime estate planning strategies (such as use of credit shelter trusts, marital deduction trusts and so-called “portability” elections) as well as post-mortem (after death) tax planning (such as by use of qualified disclaimers). If a federal estate tax return is required, we have a very knowledgeable team ready and able to correctly and efficiently prepare and file your federal estate tax return.
Call us if you have a large estate or if you have questions about Federal Estate Taxes. We can help you quickly determine if the estate is subject to federal estate taxes. We can help find ways to reduce or eliminate federal estate taxes. We can help you prepare and file a federal estate tax return should that be necessary. We can also prepare an estimate of the likely amount of federal estate taxes due.
Click here to contact us regarding probate, estate or trust administration matters. Avoid expensive probate mistakes, delays and unnecessary litigation. Contact an estate administration lawyer at the Doylestown law firm of Drake, Hileman & Davis for helpful legal advice and satisfying results.