Estate and Gift Tax Applicable Exclusion:
The amount that can be passed free of federal tax. Whatever amount is used during lifetime is no longer available for use to pass assets at death. The Estate and Gift Tax Applicable Exclusion is currently $11.58 million.
Annual Gift Tax Exclusion:
The amount that can be given to each person you want without using any Applicable Exclusion. The Annual Gift Tax Exclusion is currently $15,000.
Generation-Skipping Tax Exemption:
This allows for giving to people who are grandchildren or other “skip persons.” It may also be used as a sophisticated way of avoiding Federal estate tax at the death of a child. Each person currently has $11.58 million of Generation-Skipping Tax Exemption.
Louisiana Estate Tax:
Louisiana is one of 38 states that does not have an estate tax.
The estate tax, often referred to as the “death tax,” applies to an estate after a person has died but before any money or assets in the estate are passed on to the decedent’s heirs. Only estates that surpass a legally determined monetary threshold are subject to the estate tax.
Louisiana Inheritance and Gift Tax:
Louisiana does not have an inheritance tax. However, inheritance tax laws from other states could apply to you if you inherit property or assets from a deceased person who lived in a state that has an inheritance tax.
There is no gift tax in Louisiana either. The federal gift tax exemption is $15,000 per year for each gift recipient. If you give more than $15,000 to any person in a calendar year, then it will need to be reported to the IRS. The excess will be counted against your $11.58 million lifetime gift tax exemption and lower your federal estate tax exemption.
If you have questions or concerns about the estate tax, inheritance tax, or gift tax in Louisiana, call Morrison Law Group, PLC, at 504-831-2348 or send us an email.