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Estate Tax

Federal estate tax is imposed by the federal government on property transferred during life or at someone's death; it is officially called the unified gift and estate tax. All property, however owned and whether or not it goes through probate court before being given to inheritors, is subject to estate tax. In practice, however, fewer than 1% of estates actually owe federal estate tax. That's because for deaths in 2013, the first $5.25 million of property is exempt from the tax, and you can give away or leave an unlimited amount tax-free to a surviving spouse or charity. For federal estate/gift tax purposes, legally married same-sex couples receive the same tax treatment as do other married couples, as of 2013. Spouses can combine their exemptions to leave a total of $10.5 million without owing any federal estate tax. Some states also impose their own estate tax, in addition to the federal one. See also: gift tax; compare: inheritance tax

LA-NOLO2:DRU.1.6.3.20141021.28794