Resources

2016 Estate, Gift, And Generation-Skipping Transfer Tax Updates

As another year begins, it is only natural to look forward to all the new and exciting things 2016 will have to offer, not the least of which are the estate, gift, and generation-skipping transfer tax updates. Lucky for you, the wait is finally over, as the federal tax exemption inflation increases for 2016 have been released and are as follows:

  • In 2016, there is a $5,450,000 federal estate tax exemption per person (increased from $5,430,000 in 2015) and a 40% top federal estate tax rate.
  • In 2016, there is a $5,450,000 generation-skipping transfer tax exemption per person (increased from $5,430,000 in 2015) and a 40% top federal generation-skipping transfer tax rate.
  • In 2016, the lifetime gift tax exemption is $5,450,000 per person (increased from $5,430,000 in 2015) and a 40% top federal gift tax rate.
  • In 2016, the annual gift tax exclusion is
  • $14,000 per person (no increase from 2015).

On the state side, on June 30, 2011, Ohio Governor John Kasich signed the 2012-2013 budget into law, which eliminated the Ohio estate tax effective for deaths occurring on or after January 1, 2013. As a result, there continues to be no Ohio estate tax effective in 2016.

The increased federal exemptions listed above, coupled with the repeal of the Ohio estate tax, create unique planning opportunities for many of our clients. For example, if your spouse were to pass away with assets below the $5,450,000 federal exemption threshold, thought should be given to filing a Federal 706 Estate Tax Return for the deceased spouse in order to benefit from the portability of his or her unused exemption amount.

Whether you are interested in making lifetime gifts to friends or family, leveraging your assets, or shifting income producing assets to individuals who may be in a lower income tax bracket, such as children or grandchildren, your estate planning attorneys at Stark & Knoll will advise you on how to take full advantage of the current federal and state estate, gift, and generation-skipping transfer tax laws and will assist you with achieving your estate planning goals.

Stark & Knoll Co., L.P.A. 3475 Ridgewood Road Akron, Ohio 44333-3163
Phone: 330-376-3300 Fax: 330-376-6237

Stark & Knoll LinkedIn Page Stark & Knoll Twitter Page Stark & Knoll Facebook Page

All Rights Reserved. © Stark & Knoll Co., LPA