William Downs CyberCPA Handy Estate Tax
Reference Page

 

Estate Tax Credit
Federal estate tax law provides a credit against gift and estate tax. If credit is NOT used for lifetime gifts, it remains available for use on an Estate Tax Return, Form 706. Most people think in terms of the exemption amount, which is shown in the third column.

Year
Credit
Effective
Exemption
2002 - 2003
345,800
1,000,000
2004 - 2005
555,800
1,500,000
2006 - 2008
780,800
2,000,000
Gift Tax Exclusion
2002 and subsequent
345,800
1,000,000

Annual Exclusion
The annual exclusion from gift tax is for present interests, not future interests.

2001 and prior
10,000
2002 - 2005
11,000
2006
12,000

Generation-Skipping Transfer Tax
The GST is an additional tax applicable to transfers that skip a living generation.

2001
1,060,000
2002
1,100,000
2003
1,120,000
2004 and 2005
1,500,000
2006 - 2008
2,000,000

State Tax Credit
The credit for state death taxes had been allowed against federal estate tax. It has been phased out. Many states referred to this as a "pick-up" tax.

2002
25% Reduction
2003
50% Reduction
2004
75% Reduction
2005
no further credit

Statutory Attorney Fees
The California Probate Code sets out the normal amount of attorney fee for handling a probate estate. This fee is for ordinary services in handling an estate. Probate Code Section 10810 provides the schedule. And Probate Code Section 10800 provides an identical schedule for the Personal Representative (Executor).

First $100,000
4%
Next $100,000
3%
Next $800,000
2%
Next $9,000,000
1%
Next $15,000,000
0.5%
Additional value
Determined by Court
Example Calculations
$500,000
$13,000
$1,000,000
$23,000
$1,500,000
$28,000

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Date of last update: July 8, 2006