Exceptions to Federal Taxes on Gifts, Bequests

From the Associated Press

Money and property transferred during a lifetime or after death are subject to federal taxes under an estate and gift-tax system.

But there are exceptions. All assets left to a surviving spouse are exempt from the tax. Individuals can give anyone else up to $600,000 in gifts and bequests tax-free, or $1.2 million per married couple.

The tax rates for transfers exceeding $600,000 range from 37% to 55%. Some states also levy taxes, though often on amounts smaller than $600,000.

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