A lot of people ask about the possible
taxation of their estate from the federal government – often referred to as the
“estate tax” or “death tax”. For the
vast majority of people, this is an irrelevant issue due to recent changes in federal
tax law that significantly increased the federal estate tax exemption. However, the IRS
has recently announced the new 2014 estate and gift tax exemption. The new 2014 federal estate gift tax
exemption is $5,340,000.00. This an
increase of $90,000.00 over the 2013 estate gift tax exemption of $5,250,000.00. As a result, it is becoming very rare that an
estate will reach this level in Tennessee, although it is still certainly
possible with large estates.
Follow me on Twitter at @jasonalee for updates from the Tennessee Wills and Estates blog.