Transfer Tax Updates for 2017

Here are the key figures to keep in mind this year: 

Federal Gift Tax

  • Lifetime Exemption: $5,490,000
  • Annual Exclusion: $14,000
  • Annual Exclusion for Gifts to a Non-Citizen Spouse: $149,000
  • Top Rate: 40%

Federal Generation-Skipping Transfer Tax

  • Lifetime Exemption: $5,490,000
  • Portability: No
  • Top Rate: 40%

Federal Estate Tax

  • Exemption: $5,490,000
  • Portability: Yes; a surviving spouse may elect to use the deceased spouse’s unused exemption, in effect giving married couples an exemption of up to $10,980,000
  • Top Rate: 40%

State Estate Tax Laws

  • California imposes neither an estate tax nor an inheritance tax
  • Fourteen states (CT, DE, HI, IL, ME, MD, MA, MN, NJ — repealed effective Jan. 1, 2018, NY, OR, RI, VT, and WA) and the District of Columbia tax (a) resident estates and (b) non-resident estates owning real property or tangible personal property in the state
  • Top State Estate Tax Rate: 20%
  • Six states (IA, KY, MD, NE, NJ, and PA) levy an inheritance tax on non-spouse heirs who receive (a) certain property owned by deceased residents and (b) real estate and tangible personal property located in the state, owned by non-resident decedents
  • Top State Inheritance Tax Rate: 16%

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