Basic Need-to-Know Facts

Question 1

Federal Estate Tax Exemption in 2025

Answer 1

13.99 Million

Question 2

Federal Gift Tax Exclusion Amount

Answer 2

$19,000

Question 3

Maximum Federal Benefit Rate for SSI in 2025

Answer 3

$967

Question 4

Income Cap

Answer 4

300% of Max. Fed. Benefit Rate ($2,901)

Question 5

ADEA Age

Answer 5

40

Question 6

Citation for Self Settled SNTs

Answer 6

42 USC 1396p(d)(4)(a)

Question 7

Full Retirement Age

Answer 7

67 years old

Question 8

Quarter of Coverage (SS credit)

Answer 8

$1,810 (2025)

Question 9

Substantial Gainful Activity

Answer 9

$1,610/month

Question 10

Dependent Adult Child (DAC) share of retired workers PIA

Answer 10

50% at Retirement/75% at workers Death

Question 11

Age when Remarriage no longer affects survivor benefits

Answer 11

60

Question 12

Estate Tax Due

Answer 12

9 months after DOD or 5 year extension for DSUEA purposes only

Question 13

Alternate Estate Tax Valuation Date

Answer 13

6 months following DOD (It’s a trap!)

Question 14

Earliest Penalty Free WIthdrawl from QRAs

Answer 14

59.5 years (with some exceptions)

Question 15

Retirement Account start date

Answer 15

April 1 of the year after the year in which you turn 73

Question 16

Tax Return Form Numbers: Individual, Trust, Gift, Estate

Answer 16

1040, 1041, 709, 706

Question 17

Qualified Disability Trust Exemption

Answer 17

$5,050

Question 18

Federal Income Tax Brackets

Answer 18

10%. 12%, 22%, 24%, 32%, 35%, 37%

Question 19

ADLs

Answer 19

1. Bathing/showering,
2. Dressing,
3. Eating/feeding,
4. “functional mobility” (usually listed as “transferring”),
5. Personal hygiene and grooming,
6. Toileting

Question 20

IDLs

Answer 20

handling medication,
making change/handling money,
shopping,
use of telephone or communication device,
transportation,
housework

Question 21

ISM Calculation

Answer 21

(1/3 of MFBR + $20 (or, at $967 MFBR, $342.33) – leaving a maximum SSI benefit of $967 – $342.33 = $624.67)

Question 22

Relation of Federal Income tax brackets to Capital Gains Tax

Answer 22

For lower and middle-income taxpayers, long-term capital gains might be taxed at a lower rate than their ordinary income. For instance, someone in the 22% income tax bracket would pay only 15% on long-term capital gains.
For high earners, the top long-term capital gains rate (20%) is still lower than the top ordinary income tax rate (37%), providing a tax advantage for long-term investments.

Question 23

Short Term Capital Gains - defined and tax rate

Answer 23

taxed at the same rates as ordinary income if the asset was held for one year or less.

Question 24

Long Term Captial Gains - defined and tax rate

Answer 24

(assets held for more than one year) are taxed at lower rates, which depend on the taxpayer’s taxable income:
0% for individuals in the lowest income brackets.
15% for most middle-income taxpayers.
20% for individuals in the highest income brackets.

Question 25

What is a Qualified Disability Trust and what are the requirements?

Answer 25

A QDT is designed to provide financial support for a person with a disability without affecting their eligibility for government benefits like Supplemental Security Income (SSI) or Medicaid.
Eligibility:
The trust must be established for the sole benefit of a beneficiary who is considered disabled under the Social Security Administration’s definition of disability.
Requirements:
Disability Certification: The beneficiary must provide certification of disability from a physician. This certification must meet IRS criteria.
Trust Document: The trust must be irrevocable, meaning once established, the terms cannot be changed, and it must be dedicated to the beneficiary’s welfare.

Question 26

How is a QDT taxed and what is the exemption?

Answer 26

a QDT can claim an exemption amount similar to that of an individual taxpayer, which is adjusted annually for inflation (e.g., $5,050 for 2025). This exemption reduces the taxable income of the trust.
Tax Rates: The trust’s income is taxed at the rates applicable to individuals rather than the usually higher trust tax rates, which can be beneficial for lower income levels.