Phillip G. Sinclair

Certified Public Accountant

310 North First

Longview, Texas 75601

903-753-5871

Fax 903-753-5982

Gift and Estate Taxes

Under current estate and gift tax laws, if the gross estate of a U.S. citizen or resident decedent exceeds certain amounts, generally the estate is required to file an estate tax return, and the Federal and State governments will tax the taxable portion of the estate.

Under current law, the exempt estate varies based upon the year the decedent passed away. These amounts are as follows:

Year of Death	Filing Requirement
Prior to 1998	$ 600,000.
1998	625,000.
1999	650,000.
2000 And 2001	675,000.
2002 And 2003	700,000.
2004	850,000.
2005	950,000.
After 2005	1,000,000.

Note that in measuring the decedent's gross estate, life insurance owned by the decedent is included as well as adding back any gifts made within three years of the decedent's death. Proper planning is esential to minimize the tax burden placed on a decedent's survivors. With proper planning and correctly executed wills, a married couple can have a joint estate worth twice the above amounts and generally not be required to pay any estate taxes. Without proper planning and correctly executed wills, the tax burden could be devastating to the survivors.

We can help you plan your estate needs to minimize estate taxes. Call us at the above number to schedule an appointment or email me at the link below.

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Last Updated 05/29/2000