How Can You Minimize Your Estate Tax Exposure?

Death taxes can be a factor for you if you are in a particularly strong financial position. There is a federal estate tax that everyone around the country must contend with, and there are some states that also impose state-level estate taxes. We practice law in the state of New York, and there is a state-level estate tax in our state. There is an unlimited marital deduction that allows you to transfer unlimited assets to your spouse free of taxation, as long as your spouse is an American citizen. Transfers to others are potentially taxable, but there is a federal estate tax credit or exclusion. This is the amount that you can transfer before the estate tax would be applied. During the current calendar year, the federal estate tax exclusion is $5.43 million. On the state level, there is a lower exclusion at the present time. It will be increased each year until it meets the amount of the federal exclusion, but the New York exclusion currently stands at $3.125 million. As you can see wh


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