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Gift Tax 2021There is no dollar limit on the amount that one person is allowed to give to another. Gift tax rules do not prohibit a donor from making gifts in excess of the annual exclusion ($15,000 for 2021). However, if more than the annual exclusion is given to any one recipient, other than a spouse or charity, the amount over the annual exclusion is considered a “taxable gift.” Consequences of making taxable gifts:
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Estate Tax Form 706 2021At death, all property of the decedent is included in the gross estate for estate tax. Taxable gifts made after 1976 are added to the total. The estate is allowed deductions for funeral expenses, administrative expenses, decedent’s debts, and state death taxes. Most property passing to a surviving spouse or charity is also fully deductible. Marital Deduction An unlimited deduction is allowed for transfers to a spouse during life and for assets passing to a surviving spouse at death.
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Death of a Taxpayer 2021When a taxpayer dies, there are certain returns that still need to be filed, a responsibility that falls onto the personal representative. Personal Representative Under state law, a personal representative is the person appointed by a court to administer an estate. The term includes both executors (appointed when the decedent has a will) and administrators (appointed in the absence of a will). A personal representative nominated in a will has no authority over estate assets unless appointed by a court.