Skip to main content
A Better Partnership

Publications

Feb 2014
24
February 24, 2014

Estate Planning Tip: IRS Tax Threshold Adjustments


The IRS and the State of Michigan have completed their annual adjustments to important thresholds in the estate planning and elder law world.  Here is a quick reference guide to the current numbers. 



Estate and Gift Tax  
Estate, Gift and GST Tax Exemption Equivalent: $5,340,000
Gift Tax Annual Exclusion: $     14,000
Annual Exclusion for Noncitizen Spouse: $   145,000
Maximum Estate and Gift Tax Rate 40 %
Medicaid Asset and Income Thresholds  
Maximum Community Spouse Asset Allowance: $   117,240
Minimum Community Spouse Asset Allowance: $     23,448
Maximum Community Spouse Income Allowance (monthly): $       2,931
Monthly Income Cap for Home and Community Based Waiver: $       2,163
Average Monthly Cost of Nursing Home Care (Divestment Penalty Divisor): $       7,867
Maximum Home Equity Value $   543,000
Estates and Trust Code  
Intestate Share of Surviving Spouse with Children with Decedent: $   217,000
Intestate Share of Surviving Spouse with no Children with Decedent: $   145,000
Homestead Allowance (spouse/minor’s shelter during estate administration): $     22,000
Exempt Property (spouse/children’s right to household and personal property): $     14,000
Family Allowance (to support spouse/minors during estate administration): $     26,000
Small Estates (qualifies for summary procedure): $     22,000
Small Trusts (may be terminated as too small to justify administration expenses): $     72,000

 

NOTICE. Although we would like to hear from you, we cannot represent you until we know that doing so will not create a conflict of interest. Also, we cannot treat unsolicited information as confidential. Accordingly, please do not send us any information about any matter that may involve you until you receive a written statement from us that we represent you.

By clicking the ‘ACCEPT’ button, you agree that we may review any information you transmit to us. You recognize that our review of your information, even if you submitted it in a good faith effort to retain us, and even if you consider it confidential, does not preclude us from representing another client directly adverse to you, even in a matter where that information could and will be used against you.

Please click the ‘ACCEPT’ button if you understand and accept the foregoing statement and wish to proceed.

ACCEPTCANCEL

Text

+ -

Reset