Estate & gift tax
Estate tax and gift tax are federal taxes that can apply to the transfer of property at death or during life. Whether they affect your family depends on the value of your property and on the law at the time. Because both change, planning is about staying prepared.
The basics
The estate tax looks at the value of what a person owned at death. The gift tax looks at certain transfers made during life. The two are connected, so a gift made today can affect planning later.
Exemption amounts, rates and rules are set by law and have changed over time. We do not rely on a number from memory; we check current rules when we review a plan.
Who should pay attention
Families who do not have a taxable estate today may have one in the future. Reasons include:
- Growth in the value of real estate, investments or a business
- An inheritance or a sale of a major asset
- Life insurance owned in a way that adds to the estate
- Changes in the law that lower or raise what is exempt
- Gifts made over a lifetime that need to be tracked
Common planning topics
- Lifetime gifts, and how to document and report them
- Ways to use the marital relationship in planning for a surviving spouse
- The role of different types of trusts in a tax-aware plan
- How the ownership of life insurance affects the estate
- Valuing assets that are hard to price, such as land or a closely held business
- Coordinating beneficiary designations with the overall plan
Why this focus
Andrew Johnson holds a JD, an LLM and an MSAT, and the practice concentrates on estate and gift tax law. That emphasis shapes how we approach every plan: the tax question is considered early, not after the documents are signed.
We aim to help you understand the options and their trade-offs. We do not promise a particular tax result, because outcomes depend on facts and on the law as it stands.
What this service is, and is not
This page is about planning around estate and gift tax. It is distinct from income tax return preparation. Your accountant or tax preparer can be part of the conversation when those questions overlap.
How to prepare
- Make a rough list of what you own and its approximate value
- Note any significant gifts you have made, and to whom
- Gather copies of existing wills, trusts and insurance policies
- Identify your accountant or financial advisor so we can coordinate
- List your goals for your family, not just your tax concerns
Common questions
Will my family owe estate tax?
That depends on the value of your property and the rules in effect when it matters. A review can help you see where you stand today and what could change.
Are all gifts reportable?
Not all of them. The rules are detailed, and we can help determine whether a particular gift needs to be reported.
Can planning eliminate estate tax?
Planning may reduce or in some cases eliminate exposure, but no result is guaranteed. The right approach depends on facts and law.
Does filing a gift tax return mean I owe gift tax?
Not necessarily. A return can be required even when no tax is currently payable. Certain gifts may use part of an available lifetime exemption instead. Reporting and payment are separate questions that depend on the gift and current rules.
Can life insurance be included in a taxable estate?
Yes, depending on ownership rights and how the policy is structured. The beneficiary designation alone does not settle that question. Include policy ownership, beneficiary information and any prior transfers when reviewing your estate tax exposure.
Why does the value of an asset matter so much?
Value affects how a transfer is reported and how much of an exemption it may use. Closely held businesses, real estate and unusual assets may need professional valuation. The relevant valuation date and supporting records also matter.
Should I give an asset away now or leave it at death?
There is no single answer. A lifetime gift can have different income tax basis consequences from an inheritance, as well as estate and gift tax effects. Compare those issues with your need for the asset and your family's goals.
Can a surviving spouse use the deceased spouse's unused exemption?
Federal law can allow this through an election often called portability, but it is not automatic and may require an estate tax return even when no tax is due. Eligibility, deadlines and the limits of that election need individual review.
Can state taxes affect my estate plan too?
Yes. State estate or inheritance tax rules may differ from federal rules. Where you live and where property is located can matter, particularly if you move or own property in several states. Review those connections rather than relying only on federal exemptions.
When should I revisit my estate and gift tax plan?
Review it after a major change in wealth, a business sale, significant gifts, a death or a move. Changes in tax law can also justify a review. Keeping records of past transfers helps evaluate the plan accurately.
Talk with us
The first consultation is free. Call (208) 586-3266, email ajj@andrewjohnson.law, or use the contact page to request a consultation.
Contact the practiceThis page offers general information, not legal advice for your situation. Laws change and individual facts matter.
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