Avoid Gift and Inheritance Taxes

Which of These Items is Not Generally Included in Probate?

Smart Quiz! As of 2016, How Much Can You Give an Individual Without Having to Pay a Gift Tax?

  • $1M
  • $1K
  • $14M
  • $14K

Answer: $14K

Inheritance taxes can be applied by the state as well as the federal government, each under different names. In some cases, they can be as much as 40% and come from the individual, not the estate. As of 2016, you can give an individual up to $14,000 without having to pay a gift tax. Doing this may also bring down the size of your overall estate so that less taxes will be due on it and your loved ones may be able to avoid inheritance tax altogether.

~Here’s to Your Financial Health!