VisualCalc’s Estate Tax Calculator provides you with an estimate of your future estate taxes. The calculator shows you the estimated current value of your estate, along with your potential current year tax liability.
One of the most important financial planning tasks that many Americans should perform is to properly manage their potential estate tax liability. This is one area of personal financial planning for which consumers should seek out professional advice. However, a helpful first step that any individual can perform is to calculate an estimate of the overall value of their estate, and their potential tax liability as of “today”.
Estate tax laws may change over time, but there are some key components of estate taxes that individuals should be aware of. These include:
Lifetime Gift Tax Exclusion: In 2019, individuals are allowed to gift up to $11.4 million over their lifetime without any tax implications. This limit is based on individuals, not families, so a husband and wife could both gift up to $11.4 million during their lifetime, for a total of $22.8 million. Gift amounts beyond this can be taxed up to a maximum of 40%. In 2020, these limits will increase to $11.58 million for individuals (and $23.16 million for couples).
Annual Exclusion Amount: Individuals can gift up to $15,000 per year to anyone with no tax implications. This figure is the same in both 2019 and 2020.
Gift Tax Exclusions: Some gifts are excluded from the tax exclusions above (i.e., are not taxable, and don’t count towards the limits). These include gifts to spouses, gifts to charities and political organizations, and medical and tuition expenses if they are paid directly to the provider.
