14:56
@BruceSutter: this is my second time. I am 22
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LSDefine
Simple English definitions for legal terms
exemption equivalent
Read a random definition: adulterated drug
A quick definition of exemption equivalent:
Exemption Equivalent: The most money or property that someone can give to another person without having to pay a federal gift or estate tax.
A more thorough explanation:
Definition: The exemption equivalent is the maximum value of assets that an individual can transfer to another person without incurring a federal gift and estate tax.
Example: In 2021, the exemption equivalent is $11.7 million. This means that an individual can transfer up to $11.7 million worth of assets to another person without having to pay any federal gift or estate tax.
Explanation: The exemption equivalent is an important concept in estate planning. It allows individuals to transfer a certain amount of wealth to their heirs without incurring a tax liability. For example, if an individual has an estate worth $10 million, they can transfer up to $11.7 million to their heirs without having to pay any federal gift or estate tax. However, any amount transferred above the exemption equivalent will be subject to taxation.