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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10476
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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could you tell me the exact federal estate tax rate on an estate

This answer was rated:

could you tell me the exact federal estate tax rate on an estate of 19 million. i know there is a deductable of 5.1 mmilllion leaving taxable 13.9 million but dont know the rate it would be taxed on ? thnalk you

Lane :

for 2013 the exemption is $5,250,000 now let me get the 2013 brackets

Lane :

First, Here are the 2013 numberws

Lane :

For a Taxable Estate or Gift
From
$
0
The Federal
Tax Is
To
$
10,000
10,000 20,000
20,000
18%
$
Of the
Amount Over
$
0
1,800 + 20% 10,000
40,000 3,800 + 22% 20,000
40,000 60,000 8,200 + 24% 40,000
60,000 80,000 13,000 + 26% 60,000
80,000 100,000 18,200 + 28% 80,000
100,000 150,000 23,800 + 30% 100,000
150,000 250,000 38,800 + 32% 150,000
250,000 500,000 70,800 + 34% 250,000
500,000 750,000 155,800 + 37% 500,000
750,000 1,000,000 248,300 + 39% 750,000
1,000,000 Infinity 345,800 + 40% 1,000,000

Lane :

19,000,000 - 5,250,000 = 13,750

Lane :

sorry 13,750,000

Lane :

so 345800

Customer:

i understand the 40% part but very confused as to what the 345,800 is ?

Lane :

so 345800 + (.4 x 13750000) = 5,845,800

Lane :

It's just the tax on the dollars UP TO 1,000,000

Customer:

so the 345,800 its just an extra tax that any estate pays on over 1 mil ?

Lane :

It's the tax the estate pays on the FIRST million

Lane :

by adding up the progressive tax brackets that go you there

Lane :

see how each bracket is defined by a number then is says X% on the amount over Y?

Customer:

sorry to be so ignorant , but its on the first mil over the exemption correct ?

Lane :

That's exactly right ... TAXABLE estate

Customer:

thank you for excellent information

Lane :

the 345,000 is just what all those previous amounts add up to (after having already chopped off the 5,250,000

Lane and 2 other Tax Specialists are ready to help you
Customer: replied 3 years ago.

im back , 1) exactly how is a family llc taxed (if at all) as part of an estate


2) how is a life insurance trust taxed in an estate (if at all) ?


 


thank you


 


You;'re all around it.

It all depends on whether the assets ARE viewed as part of the estate

For life insurance trusts, if they're set up a irrevocable and establish with all of the requirements of a complete gift of present interest they are NOT part of the estate.

And on the Family LLC, it just depends on what the decedent's interest is
Lane and 2 other Tax Specialists are ready to help you