The new estate and gift tax exclusion for 2014 is $5,340,000, up from $5,250,000 last year. (Essentially, this means that most of us will not have to worry about federal estate taxes. But there are still state estate taxes to consider.)

The gift-tax exclusion remains at $14,000 per donee per year, to as many recipients as one wishes. In addition, tuition payments made directly to schools or universities and medical expenses paid directly to doctors or medical institutions are not considered in those totals.

Up to $1,090,000 of farm or business realty can get a discounted estate tax valuation. And more estate tax will qualify for an installment tax break. If more than 35 percent of an estate is made up of one or more closely held businesses, as much as $580,000 of tax can be deferred and the IRS will charge only 2 percent interest.

For nearly 30 years, Mike Nickerson has owned and managed a small, full-service accounting practice in the Midcoast. He holds a bachelor's degree in accounting from University of Southern Main and a master's degree in financial planning from Bentley University.

He is a past board member and president of the Maine Society of Certified Public Accountants and currently serves on the Maine Board of Accountancy.

An aged rock musician, Nickerson now finds musical enjoyment playing upright and electric bass in a variety of bands spanning folk to jazz music genres. He and his wife have three grown children, and they enjoy their free time hiking, kayaking, golfing, bicycling and motorcycling.

http://www.nickersonpa.com/