Death Taxes: Estate, Inheritance, Gift, and Capital Gains Taxes Explained

Join Jake Polivka for a practical overview of the taxes that affect the transfer of wealth during life and at death (commonly referred to as "death taxes"). This session explores the federal estate tax, state inheritance taxes, the federal gift tax, the generation-skipping transfer (GST) tax, and the capital gains taxation of inherited and gifted property. Attendees will gain a clear understanding of how these tax regimes interact, where common planning pitfalls arise, and how recent developments may affect client planning and advisory strategies.

Learning Objectives:

1. Distinguish among the federal estate tax, state inheritance taxes, the federal gift tax, the generation-skipping transfer tax, and capital gains tax, and identify which parties bear the burden of each.
2. Explain how the lifetime gift and estate tax exemptions coordinate under the unified credit, and analyze the consequences of lifetime gifting versus transfers at death.
3. Describe the purpose and mechanics of the generation-skipping transfer tax, including how the GST exemption is allocated and when the tax applies to direct skips and trust distributions.
4. Evaluate the income tax implications of transferred property, including the step-up in basis at death under IRC §1014 versus carryover basis for lifetime gifts under IRC §1015.
5. Apply these principles to identify planning opportunities and common pitfalls when advising clients on wealth-transfer strategies.