2016 Tax Updates
Jan 25, 2016
NOELLE MINTO, ESQ.Happy New Year!
We hope your New Year’s Eve celebrations were more eventful than the recent tax updates which remain unchanged from 2015 for the annual gift tax exclusion of $14,000. The annual gift exclusion is separate and does not count towards the lifetime gift exemption which did change for 2016.
The federal estate tax exemption is now at $5,450,000 per person; up $20,000 from 2015’s applicable exclusion of $5,430,000. That means you may pass on an extra $20,000 tax-free to your loved ones. Fortunately, California does not have state “Death Tax” but there has been an elimination of the allowable State Death Tax Credit in other states when filing Form 706 Estate Tax Return for decedents dying in 2005 and later years.
The Health Savings Account 2016 maximum contribution limits are $3,350 for single person coverage, and for family coverage the maximum contribution is $6,750.
For those diligently planning for retirement, the elective contribution limit for employees who participate in 401(k), 403(b) and 457 plans remains unchanged at $18,000 for 2016.
Now that the holidays are over, let’s get back to business and allow us to address your estate planning and business needs so you can enjoy the rest of 2016 peacefully and successfully.
Noelle R. Minto
NM Law, APC
Disclaimer: This article is intended to provide a general summary of laws in the State of California and should not be construed as a legal opinion nor a complete legal analysis of the subject matter. Noelle Minto is an attorney at NM Law, APC in Tustin, California, a law firm specializing in Trusts & Estates and Business Transactions.
Testimonials
John Schroeder was brought on to work on my case with Samantha and they updated/collaborated with Noelle. Noelle, Samantha and John are all patient, direct and very personable. Their knowledge and professionalism are exceptional. NM Law was successful in achieving a Settlement Agreement under difficult circumstances amongst people with little trust in one another. Thankfully we did not have to bear the cost of going to trial, however, I have complete confidence that NM Law would have prevailed if we had.
I highly recommend NM Law. I look forward to working with them again, but this time to plan my estate.
I want to thank you and your staff for the courtesy extended to us during our family's pending emergency deadline.
Mr. O'Grady spoke to my brother and gave us his best recommendation regarding my father's estate.
It is really hard to speak, and even harder to "plan" generational wealth with a parent in terms of assets, intentions, and mortality, but it is a necessary conversation to have, if only to lessen the unfairness of life that eventually catches up to all of us.
Our family tried to bring justice to my father's death within this probate process and found no justice, this system must be changed, so that a fairness is inherit within this system and not just a scam—lots of hard lessons to be learned from a broken probate process.
In either case, thank you again for giving our family the attention and direction we sought. The adage is true, not all lawyers are the same. Looking forward to working with your office in the near future, as we don't want to repeat this experience with our Mom.
Gracias,
Abraham
We highly recommend NM Law for your estate planning needs.
I highly recommend NM Law.
Charities We Support
We dedicate pro bono time, volunteer services, and a percentage of our gross revenue to these organizations. In 2023, we sponsored a refugee family of five to come to the United States and start a new life.
Each year our law firm decides as a group which charities to assist with our time, money, and expertise. Please feel free to click on any of the charities below and make a donation of your own.
