Irvine, Orange County Estate and Gift Tax Planning Attorney

Advising Families in Irvine, Orange County and throughout Southern California on Estate Tax and Gift Tax planning strategies as part of comprehensive estate plans.

Estate Planning potentially involves estate, gift, generation skipping, income and property tax planning. The purpose of this article is a broad overview only, and it does not include income tax or property tax reduction techniques.

Determination of Estate Tax

Net Worth determines your estate tax, so the first step is to add up all of your assets and then subtract all of your liabilities on the Net Worth Computation Page. Don’t forget to include life insurance death benefits which are subject to estate tax. Your assets minus your liabilities equals your net worth. Proper planning also requires that you project a reasonable rate of growth on your assets to whatever time in the future you feel to be foreseeable because plans fail if not updated and are not flexible enough to allow for such growth.

The next step is to apply your current and projected future net worth to the chart below based upon the 2001 Tax Act. You can pass up to the exemption amount during your life or at death free of gift or estate tax if you haven’t already used any of the exemption on lifetime gifts. But if your net worth exceeds this amount, it will be subject to tax at the appropriate rate.

Gift ,Estate and GST tax exemptions, highest rates and potential liability under the American Taxpayer Relief Act of 2012.



Gift, Estate and GST Tax Exemptions

Highest Estate, GST and Gift Tax Rates

Estate tax on $10 million Estate tax on $25 million
2023 $12.92 million 40% $-0- $4,832,000
$13.61 million 40% $-0- $4,556,000

1 The Gift. Estate & GST tax exemptions are indexed for inflation.

Source: U.S. Internal Revenue Code

Net Worth Computation Page

Law Offices Of Michael J. Wittick, A Professional Law Corporation is located in Irvine, CA and serves clients with estate and wealth preservation matters throughout Irvine, Lake Forest, Laguna Woods, Laguna Hills, Foothill Ranch, Tustin, Aliso Viejo and the surrounding areas.

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