• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Unsworth LaPlante, PLLC

Vermont Estate Planning Attorneys

Vermont: (802) 879-7133

Attend A Free Workshop
  • Home
  • Our Firm
    • About Our Firm
    • Meet Our Team
    • What to Expect When Working with Us
  • Services
    • Estate Planning
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Medicaid Planning & Elder Law
    • Pet Planning
    • Special Needs Planning
    • Trust Administration
    • Young Families Planning
  • Resources
    • Articles
    • Elder Law Reports
    • Elder Law Resources
      • Burlington
      • Montpelier
      • Rutland
      • St. Johnsbury
      • White River Junction
    • Estate And Gift Tax Figures
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Elder Law
      • Estate and Gift Tax
      • Estate Planning
      • Estate Planning for Blended Families
      • Estate Planning for Parents
      • FAQs for Families Without an Estate Plan
      • Incapacity Planning
      • In-Home Elder Care FAQs
      • IRA & Retirement Planning
      • Gift, Estate, and Inheritance Taxes
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Philanthropy and Estate Planning
      • Planning for Long-Term Care
      • Pet Planning
      • Revocable Living Trust FAQs
      • Special Needs Planning
      • Trust Administration
      • Trusts
      • Wills
    • Is Your Estate Plan Outdated?
    • Medicaid Resources
      • Medicaid Analysis Worksheet
      • Medicaid Guide
      • Vermont Medicaid
    • Newsletters
    • Presentations
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
    • SECURE Act
    • Top Estate Planning Techniques
  • Webinars/Seminars
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact
Home » Federal Estate Tax Exclusion Adjusted Slightly in 2016

Federal Estate Tax Exclusion Adjusted Slightly in 2016

January 19, 2016 by Stephen Unsworth

Internal Revenue ServiceThe federal estate tax is a factor on asset transfers that exceed the amount of the federal estate tax exemption or exclusion. At the present time, the taxable portion would be subject to a death tax with a maximum rate of 40 percent.

Back at the end of 2010, a piece of legislation that is called the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 was passed, but it had a two-year lifespan. Provisions contained within this act set the estate tax exclusion at $5 million in 2011, and it allowed for an inflation adjustment in 2012. During that year, the adjusted estate tax exclusion was $5.12 million.

Under laws that existed at that time, the estate tax exclusion was going to go down to just $1 million in 2013 after the expiration of this legislative measure. This was part of the so-called “fiscal cliff” scenario that you may recall.

At the very end of the year, this scenario was averted through the enactment of the American Taxpayer Relief Act of 2012. Among other things, this act made the $5 million inflation-adjusted estate tax exclusion permanent.

There have been a series of adjustments each year since then, and in 2016, the exclusion is $5.45 million. This represents a $20,000 increase over the $5.43 million exclusion that we had in 2015.

Portability

The tax act that was passed at the end of 2010 made the exclusion portable between spouses, and portability was made permanent via provisions contained within the American Taxpayer Relief Act of 2012. This allows a surviving spouse to use the exclusion that his or her spouse was entitled to, so a surviving spouse would be able to use two exclusions.

Gift Tax

In addition to the federal estate tax, there is also a gift tax. This tax exists to stop people from giving gifts to avoid the estate tax. The gift tax is unified with the estate tax, so the exclusion is a unified exclusion. It applies to gifts that you give while you are living along with the estate that will be transferred to your heirs after you are gone.

Vermont State Estate Tax

Fourteen states in the union and the District of Columbia impose state-level estate taxes. We practice in the state of Vermont, and there is a state-level estate tax to contend with in our state.

Your estate can be subject to the Vermont estate tax even if it is exempt on the federal level, because the state-level exclusion is lower than the federal exclusion. The Vermont state estate tax exclusion sits at $2.75 million at the present time.

Schedule a Consultation

If your estate is going to be subject to death taxes on the federal level, the state level, or both, you have to be proactive about the implementation of tax efficiency strategies. There are a number of different steps that you can take to preserve your legacy for the benefit of your loved ones.

The ideal tax efficiency strategy will depend upon the circumstances, so personalized attention is very important. If you would like to discuss your unique situation with a licensed professional, contact us through this link to set up a consultation: Essex Junction, VT Estate Planning Attorneys.

 

 

 

  • Author
  • Recent Posts
Stephen Unsworth
Stephen Unsworth
Stephen A. Unsworth is admitted to practice in both Vermont and Maine, and has more than 30 years of experience in estate planning and business law. His mission is to provide quality estate planning services, including assistance with Living Trusts, Wills, Medicaid Planning, Probate, Trust Administration, Powers of Attorney, Special Needs Planning, and Family Limited Partnerships.
Stephen Unsworth
Latest posts by Stephen Unsworth (see all)
  • Does My 401(k) Account Count for Medicaid Eligibility? - October 20, 2022
  • Senior Care Options - October 18, 2022
  • Is an Oral Will Valid in Vermont? - October 13, 2022

Filed Under: Uncategorized Tagged With: Estate Planning

Other Articles You May Find Useful

Essex Junction elder law attorneys
What You Need to Know about Elder Abuse
Essex Junction Medicaid planning attorneys
How to Apply for Senior Medicaid in Vermont
Planning for the “Silver Tsunami”
Discharge of Indebtedness Income and Student Loan Forgiveness
More than Just Salad Dressing: The Ongoing Saga of Newman’s Own Foundation
Essex Junction Medicaid planning attorneys
Does My 401(k) Account Count for Medicaid Eligibility?

Primary Sidebar

Elder Law and Medicaid Planning Attorneys

Unsworth LaPlante, PLC

DOWNLOAD OUR FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube

Blog Subscription

Sign up to Unsworth LaPlante's estate planning blog to receive all the latest news and updates.

  • This field is for validation purposes and should be left unchanged.

Essex Junction, VT

26 Railroad Ave
Essex Junction, VT 05452
United States (US)
Phone: (802) 879-7133
Fax: (802) 879-0408

Map

unsworth_sidbr_map

Office Hours

Monday8:00 AM - 4:00 PM
Tuesday8:00 AM - 4:00 PM
Wednesday8:00 AM - 4:00 PM
Thursday8:00 AM - 4:00 PM

Footer

footer-logo
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube

The information on this Vermont Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

American Academy of Estate Planning Attorneys, Inc. Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2023 American Academy of Estate Planning Attorneys, Inc.