Giving gifts is a nice thing to do for a friend or family member, but, as the saying goes, “no good deed goes unpunished” – at least when it comes to the IRS. The federal government imposes a gift tax that is currently 40%. And if you live in Connecticut, your gift may also be […]
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 […]
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 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.
On January 1st of this year, many tax changes were introduced and implemented – and all tax payers are affected. Here are just some of what’s new for this year…with more changes sure to come. STANDARD DEDUCTION The 2019 standard deductions go up a bit. Married couples get $24,400 plus $1,300 for each spouse age […]
You’ve been blessed to find a love for a second time. Congratulations! A new (re)marriage can bring the joy of finding a loving partner twice in a lifetime and the promise of happy times to come. So, it’s no wonder that amongst newly remarried couples sticky topics such as finances and blending of family dynamics […]
Connecticut Estate Planning Attorneys Blog