Ben Brunette, Selinger & Brunette
The estate tax often plays a significant role in major donors' decision to establish planned gifts. The Federal tax code currently allows individuals to transfer $5.49 million of assets to their heirs, during lifetime or at death, without estate or gift tax consequence. An approximately 40% tax applies to all gift transfers made to any person (other than a spouse or charity) in excess of this $5.49 million. Rather than pay this tax, donors sometimes make large gifts to their preferred charities.