Estate & Gift Tax

Question 1

When does a decedent not have to file an estate tax return?

Answer 1

If the decedent’s total estate (at the time of death) is less than 5.25 MM$ in assets

Question 2

What is the marital deduction?

Answer 2

Any property that passes of any value to a spouse is deducted from estate and gift taxes. However it does have to file a return if above 5.25 MM

Question 3

How are gift taxes calculated?

Answer 3

14,000$ are exempt per donor per year. Not counting that, no gift tax is necessary until lifetime gifts to that donor are over 5.25 MM, though each gift goes on the annual gift tax return. Gift taxes don’t count for future gifts (testamentary)

Question 4

tuition payments as gifts?

Answer 4

If the gift is directly to the school, then there is no limit and no gift tax

Question 5

revocable trusts as gifts?

Answer 5

They are not actually gifts because they are revocable. It is incomplete for gift tax purposes, and no return is needed. But upon death, it is taxable in T’s estate.