Financial Tips

Financial Tips

Financial Tips

2017 Gift and Estate Tax Limits
(Updated: 02/07/2017)

Which of the choices below accurately represents the 2017 annual gift tax exclusion and the 2017 lifetime gift and estate tax exclusion?

  1. $14,000; $5,450,000
  2. $14,000; $5,490,000
  3. $15,000; $5,490,000
  4. $14,500; $5,490,000




Answer: B.

The annual gift tax exclusion for 2017 is $14,000, the same as in 2016. This means you can gift up to $14,000 to as many people as you like during the year without incurring gift taxes. The lifetime gift and estate tax exclusion rose to $5.49 million, up from $5.45 million in 2016. The lifetime exclusion is separate from the annual gift tax exclusion and allows you to leave $5.49 million to heirs free of federal estate and gift taxes. These limits can and do fluctuate on an annual basis, so it makes sense to review them regularly.


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Fact vs. Fiction

We understand that it can be tricky navigating the world of personal finance. Everyone seems to have an opinion, and it can be hard to know what to believe. We created this series as a way to present and debunk some of the most common financial myths.

Fiction: When choosing a mortgage, my best option is the one with the lowest rate.

Fact: Mortgage loans are not all alike. Some offer a fixed interest rate while others have an adjustable rate. Some have points and fees attached. Be sure you understand the complete cost of each mortgage, and ask prospective lenders for the same information—loan amount, loan term, and type of loan—so that you can effectively compare your options. Also be sure to cast a wide net; in addition to checking with your bank, shop around for mortgages at credit unions, mortgage companies, and online lenders.

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Last Updated: 02/07/2017