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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
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Credit
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Effective Exemption
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2002 - 2003
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345,800
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1,000,000
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2004 - 2005
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555,800
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1,500,000
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2006 - 2008
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780,800
|
2,000,000
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Gift Tax Exclusion
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2002 and subsequent
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345,800
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1,000,000
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Annual Exclusion
The annual exclusion from gift tax is for present interests, not future interests.
2001 and prior
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10,000
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2002 - 2005
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11,000
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2006
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12,000
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Generation-Skipping Transfer Tax
The GST is an additional tax applicable to transfers that skip a living generation.
2001
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1,060,000
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2002
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1,100,000
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2003
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1,120,000
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2004 and 2005
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1,500,000
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2006 - 2008
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2,000,000
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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
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25% Reduction
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2003
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50% Reduction
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2004
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75% Reduction
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2005
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no further credit
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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
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4%
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Next $100,000
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3%
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Next $800,000
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2%
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Next $9,000,000
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1%
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Next $15,000,000
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0.5%
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Additional value
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Determined by Court
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Example Calculations
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$500,000
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$13,000
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$1,000,000
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$23,000
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$1,500,000
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$28,000
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Links to forms and instructions, PDF:
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