Estate and Gift Tax Exclusions

Estate and gift tax exclusions refer to the amount of money or property you can transfer either at your death or as gifts during your lifetime without owing federal taxes. For estate tax, the exclusion limits the total value of your estate that can pass tax-free, after which a tax rate applies. For gift tax, it sets the annual amount you can give to an individual without incurring tax. These exclusions are periodically adjusted for inflation. Utilizing these exclusions effectively can help minimize tax liabilities and preserve more wealth for beneficiaries.