September 23, 2015

While most estates will not owe federal estate or gift tax because of the fact that you can give away or leave much behind without tax consequences, you should still be aware of the estate tax. More people are growing their wealth into a position of needing to plan for estate taxes.

Even if you’re not necessarily concerned about estate taxes, you should be planning ahead to leave the most possible behind for your beneficiaries with one of several planning tools. Read on to learn more about some of the most common deductions and exemptions as they relate to your estate:

• Marital deduction: Property left to a surviving spouse is generally free of estate tax, but you’ll need to speak with your estate planning specialist about how to structure this. Surviving spouses usually get a big tax break if the deceased spouse never used up his or her personal estate tax exemption.
• Personal estate tax exemption: In 2015, the amount allowed to pass without tax consequences is $5.43 million.
• Charitable deduction: If you leave property behind to a tax-exempt charity, this is done so tax-free.

As suggested, you need to consult with your estate planning attorney to learn how these might impact your estate.