Estate Tax

A word about state death taxes

The individual states also impose their own “death taxes,” in the form of an estate tax or an inheritance tax, or both. Whether your estate will be subject to state death taxes depends on the size of your estate and the tax laws in effect in the state in which you are domiciled.

Some states also impose a separate gift tax.

A word about generation-skipping transfer (GST) tax

GST tax is an additional tax imposed on property you transfer to an individual who is two or more generations below you (e.g., a grandchild or great-nephew). A flat tax rate equal to the highest estate tax rate then in effect is imposed on every generation-skipping transfer you make over the GST tax exemption, which is $5,490,000 (in 2017, $5,450,000 in 2016).

Some states also impose their own GST tax.

Federal Gift and Estate Exclusion Limits and Tax

For 2017, there is a $5,490,000 gift and estate tax basic exclusion amount, the estate of a deceased spouse can transfer any unused applicable exclusion amount to the surviving spouse, and the top gift and estate tax rate is 40%.

YearAmount effectively excluded from federal gift and estate taxHighest federal gift and estate tax rates
2016$5,450,000 plus DSUEA*40%
2017$5,490,000 plus DSUEA*40%

*Basic exclusion amount plus deceased spousal unused exclusion amount (exclusion is portable for 2011 and later)

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IMPORTANT DISCLOSURES

Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax and legal professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

This communication is strictly intended for individuals residing in the state(s) of PA. No offers may be made or accepted from any resident outside the specific states referenced.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2017.