¶ … Tax Estate taxes are an important part of financial planning, especially for those who have significant assets they wish to leave to others when they die (Bradford, 2010)
Everything together makes up the "gross estate," which can include securities, real estate, trusts, business interests, annuities, insurance policies, cash, and other assets such as cars, boats, and furniture (IRS, 2013). However, a person will generally not have to pay estate tax on the entire gross estate (Shapiro & Graetz, 2005)
Changes of on Gift and Estate laws in the year 2013 have had an impact on multiple individuals in the economy. This last minute legislation by congress provides high exception rates, benefits spouses, and reduces the tax rates on Gift as well as Estates (Baker et
Direct consideration relates to the availability of full interest on the property while indirect consideration represents the negative. In cases where intangible, as well as tangible properties need transferring, the federal government imposes a tax on the donor (Stephen, 2009)
Old employees suffer due to additional contributions on their pension plans. It is a requirement that old employees should contribute more to their pension plans, and for those already retired, then federal government increased the minimum requirement age for distribution of benefits and revised the expectancy tables for such employees (Singleton, 2011)
Tax cuts by the Bush administration had some impact, but this exclusion by president's Obama administration provides relieve to families as well as individuals. The future of Estate and Gift tax in America is bright, but there is a cloud of uncertainty with future changes in government (Gale & Potter, 2002)