Now open: Africaâs first underwater hotel room. Okay, hotel room might be a slight understatement, as this place is more like a three-story private island: Catch rays on the top deckâs cushy daybed, chill out in the dining/ living area on the water deck, and sleep with the fishes. Depth: 13ft.
That means that in 2016 you can bequeath up to $5 million dollars to friends or relatives and an additional $5 million to your spouse tax-free. In 2017, the federal gift tax and estate tax will be combined for a total exclusion of $5 million. If you give away money, that will lower your lifetime taxable estate. Gifts that exceed the yearly exclusion also lower your overall estate tax exemption. Based on the example above, the same gifts would lower your lifetime estate tax exemption by $24,000. Gifts under $13,000 do not affect your estate tax exemption.
Here's an example: Let's say your mother has two children and four grandchildren. As an individual, she can give each of these six people up to $14,000 this year without having to report the gifts or pay gift taxes. However, let's say that she wants to give each family member $25,000 this year.