The best way to maximize the federal death tax exemption for an older husband and a younger wife who have young children is to put money into a trust designed to repay the estate the initial amount plus interest at a rate set by the Treasury, typically over two years.
What is he federal death tax?
A tax on property (cash, real estate, stocks, or other assets) transmitted from a decedent to their heirs is known as the federal estate tax. The tax is only applied to the amount of an estate's worth that exceeds a predetermined exemption limit, which in 2017 was $5.49 million per person (effectively $10.98 million per married couple). As a result, only the wealthiest estates are subject to it.
How much can you inherit without paying federal taxes?
A tax on the total amount of assets a person gets from a deceased person—i.e., an inheritance tax—is not imposed by the federal government. In contrast, a federal estate tax is imposed on estates that are worth more than $11.7 million in 2021 and $12.06 million in 2022. Only the share of an estate that is more than those sums is taxed.
Learn more about federal estate tax: https://brainly.com/question/1383982
#SPJ4
