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how does the unified tax credit work if this year i want to give away 2million dollars this year is that tax free for me and who i give it to, because the estate tax limit is at 3.5 million. if so if i die in 2011 when the estate tax limit goes back to 2002 exemption level does that amount between the 2 million and the limit become taxed

Submitted: 163 days and 23 hours ago.

Category: Tax

Value: $15

Status: CLOSED

Posted by Steven Meyerson, CPA 163 days and 23 hours ago.

Answer

Dear XXXXXX -

The unified credit for lifetime taxable gifts is $1,000,000. The unified credit for an estate with the decedent dying in 2009 is $3,500,000.

Gifts in excess of $1 million are taxable to the donor, the recipient of the gift does not pay a tax.

163 days and 22 hours ago.

Reply

i id not get an answer regarding taxes when i die does that have any relavence on the gift i gave in 2009 if tax exemptions are lower the year i die. If so shouldn't i give away money now while i can take advantage of higher exemption levels

Accepted Answer

Dear XXXXXX -

In 2011 the unified credit for estate tax becomes $1 million. Thus if you used your credit during your lifetime, all of the remaining assets will be taxable upon your death.

Accepts:
Expert:	Steven Meyerson, CPA
Pos. Feedback:	99.2 %
Answered:	6/12/2009

Certified Public Accountant (CPA)

CPA, Over 29 yrs experience w/individuals and small businesses. Masters in Tax, Divorce Specialist

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