Search Results for: gift tax

Do you have to pay tax on all gifts that you give?  For the majority of Americans, the answer is a resounding NO! So, we all know that the federal government imposes a gift tax, but did you know that only Connecticut imposes a gift tax? Luckily, if you understand how the federal government’s gift tax works, […]

Gifting money is a nice thing to do for a friend or family member, but—as the saying goes—no good deed goes unpunished. If you’re not careful, your gift could turn out to be subject to the federal gift tax of up to 40%. In part one of this series, we covered the annual and lifetime […]

The main purpose of the federal gift tax is to keep people from avoiding paying the federal estate tax by simply giving away all their money before they die. The basics of the gift tax are as follows: In 2022 the maximum federal gift tax rate is 40%. There is an annual exclusion, which in […]

By Peter J. Smith One of the most common questions I get on a daily basis is about annual gifting.  In particular, clients ask about giving away $14,000 a year. Can you?  Should you?  Are you limited to that amount?  How does that affect taxes? In response to these questions, I have to ask another: […]

Just when you think you’ve reached a point in life where you know exactly what love is, along come grandchildren. And it’s fun to spoil your grandchildren! When they are little, it’s so easy. You can let them have ice cream before dinner, give them that amazing game system they wanted (and their parents wouldn’t […]

It’s a nice thing to be able to give someone you love a gift, especially when that gift can help ensure their security, wellbeing, and even happiness. But you have to be careful when giving gifts—either cash or property. The annual gift tax exclusion is $16,000 per recipient in 2022, or—if you and a spouse […]

By Brendan Daly The Senate recently introduced two bills that include proposed changes to the federal estate tax laws. The reason?  To raise revenue due to the pandemic relief and infrastructure packages. These bills will have a significant impact on future estate planning, and may also disrupt existing plans with the increased risk of estate […]

By Paul T. Czepiga Connecticut residents are exposed to both a federal estate tax and a Connecticut estate tax if their net worth at death exceed a certain level. Unfortunately, the net worth level at which these taxes apply, and how they apply, is different for the federal estate tax and for the Connecticut estate […]

A common way for a wealthier couple to minimize their estate taxes is to set up two trusts within each of their Wills or revocable trusts, to be established upon the death of the first spouse. A family trust receives the full exemption amount, with the remainder passing to a marital trust.

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