Understanding Estate Taxes and Gift Taxes
Learn about the taxes that affect every estate, including gift taxes, estate taxes, generation skipping transfer taxes and income taxes; how to minimize or even eliminate estate taxes if your estate is taxable; your options for paying estate taxes; and how to effectively use life insurance to minimize and/or pay for estate taxes.
Understanding Estate Taxes & Advanced Planning
Understanding estate taxes, inheritance taxes and gift taxes is essential to planning an estate. And once the basic estate plan is in place, the next step is to assess the need for asset protection planning and other types of advanced planning.
Understanding estate taxes, inheritance taxes and gift taxes is essential to planning an estate. And once the basic estate plan is in place, the next step is to assess the need for asset protection planning and other types of advanced planning.
What is the Federal Estate Tax?
The federal estate tax is a tax collected on the transfer of a person's assets to his or her loved ones after death. Every U.S. citizen's estate is subject to the tax, but not all estates will actually have to pay the tax. Find out why.
The federal estate tax is a tax collected on the transfer of a person's assets to his or her loved ones after death. Every U.S. citizen's estate is subject to the tax, but not all estates will actually have to pay the tax. Find out why.
Understanding Death, Estate, and Inheritance Taxes
There are two types of taxes that can be assessed against your property after you die - estate taxes and inheritance taxes, both of which are commonly referred to as death taxes.
There are two types of taxes that can be assessed against your property after you die - estate taxes and inheritance taxes, both of which are commonly referred to as death taxes.
Overview of Taxes that Affect an Estate
When preparing or updating your estate plan, you will need to have a basic understanding of the different types of taxes that can affect your estate - gift taxes, estate taxes, inheritance taxes, generation skipping (or GST) taxes, and income taxes.
When preparing or updating your estate plan, you will need to have a basic understanding of the different types of taxes that can affect your estate - gift taxes, estate taxes, inheritance taxes, generation skipping (or GST) taxes, and income taxes.
Overview of Current Federal Estate Tax Laws
In this post election year, the future of the federal estate tax is truly up in the air. Currently the federal exemption from estate taxes and estate tax rate are supposed to change as shown in the "Current Federal Estate Tax Schedule."
In this post election year, the future of the federal estate tax is truly up in the air. Currently the federal exemption from estate taxes and estate tax rate are supposed to change as shown in the "Current Federal Estate Tax Schedule."
What is the Future of the Federal Estate Tax?
Where the federal estate tax will go beyond 2009 is entirely up in the air. Under current law, the tax is scheduled to completely disappear in 2010. But don't be surprised if the federal estate tax not only sticks around but ends up taking a significant chunk out of your beneficiaries' pockets.
Where the federal estate tax will go beyond 2009 is entirely up in the air. Under current law, the tax is scheduled to completely disappear in 2010. But don't be surprised if the federal estate tax not only sticks around but ends up taking a significant chunk out of your beneficiaries' pockets.
Do You and Your Spouse Still Have "I Love You" Wills?
Do you and your spouse have "I Love You" wills? If so, then you are missing out on some incredible estate planning opportunities, including estate tax planning, asset protection planning, and keeping your property in your family instead of allowing it to get into the hands of a second or later spouse's family.
Do you and your spouse have "I Love You" wills? If so, then you are missing out on some incredible estate planning opportunities, including estate tax planning, asset protection planning, and keeping your property in your family instead of allowing it to get into the hands of a second or later spouse's family.
How to Calculate the Value of Your Gross Estate
If you want to calculate your estate tax liability, you'll first need to calculate the value of your gross estate. Here's how.
If you want to calculate your estate tax liability, you'll first need to calculate the value of your gross estate. Here's how.
What Are Non Probate Assets and Are They Included in Your Estate?
Non probate assets are simply assets that won't need to be probated after you die. But will they be included in the value of your estate for estate tax purposes? Find out.
Non probate assets are simply assets that won't need to be probated after you die. But will they be included in the value of your estate for estate tax purposes? Find out.
How to Calculate Your Estate Tax Liability
Whether your estate will be liable for estate taxes depends upon the value of your gross estate, the amount of debt owed by you at the time of your death, the total expenses that will be incurred while settling your estate, and any deductions that your estate can take. Here's how to get an estimate of your estate tax liability.
Whether your estate will be liable for estate taxes depends upon the value of your gross estate, the amount of debt owed by you at the time of your death, the total expenses that will be incurred while settling your estate, and any deductions that your estate can take. Here's how to get an estimate of your estate tax liability.
What Value of an Asset is Used for Estate Tax Purposes?
When calculating the value of a gross estate for federal estate tax purposes, there are two different values that can be used: the "date of death" value and the "alternate valuation date" value.
When calculating the value of a gross estate for federal estate tax purposes, there are two different values that can be used: the "date of death" value and the "alternate valuation date" value.
Exemption From Federal Estate Taxes: 1997 - 2010
The exemption from federal estate taxes has increased over the past 12 years. Here you'll find a chart that shows the increases in the exemption from 1997 through 2010.
The exemption from federal estate taxes has increased over the past 12 years. Here you'll find a chart that shows the increases in the exemption from 1997 through 2010.
What is the Gift Tax?
The federal gift tax is one of the most misunderstood and often ignored taxes assessed by the federal government. Two states also assess their own gift tax - Connecticut and Tennessee. Learn what the gift tax is and who is responsible for paying it.
The federal gift tax is one of the most misunderstood and often ignored taxes assessed by the federal government. Two states also assess their own gift tax - Connecticut and Tennessee. Learn what the gift tax is and who is responsible for paying it.
What Gifts Are Subject to the Gift Tax?
The federal gift tax applies to all gifts that you make during the course of your lifetime. Whether a gift will be taxable for gift tax purposes depends on three things: (1) Who the recipient of the gift is, (2) The fair market value of the gifted property, and (3) Whether the gift is of a present or future interest.
The federal gift tax applies to all gifts that you make during the course of your lifetime. Whether a gift will be taxable for gift tax purposes depends on three things: (1) Who the recipient of the gift is, (2) The fair market value of the gifted property, and (3) Whether the gift is of a present or future interest.
How is the Gift Tax Calculated?
The federal gift tax applies to all gifts that you make during the course of your lifetime. However, every U.S. citizen is given a lifetime exemption from paying gift taxes. Thus, a gift tax will only be owed if the total value of all of the gifts that you've made exceeds your lifetime exemption from gift taxes.
The federal gift tax applies to all gifts that you make during the course of your lifetime. However, every U.S. citizen is given a lifetime exemption from paying gift taxes. Thus, a gift tax will only be owed if the total value of all of the gifts that you've made exceeds your lifetime exemption from gift taxes.
Are Gifts to Your Spouse Taxable?
Are gifts to your spouse taxable? The answer to this question depends on the answer to two other questions: (1) Is your spouse a U.S. citizen? and (2) Is the gift to your spouse a gift of a present or future interest?
Are gifts to your spouse taxable? The answer to this question depends on the answer to two other questions: (1) Is your spouse a U.S. citizen? and (2) Is the gift to your spouse a gift of a present or future interest?
Annual Exclusion Gift Amounts: 1997 - 2009
The annual amount exempt from the federal gift tax, called the annual gift tax exclusion, was indexed for inflation beginning in 1997 and has slowly increased over the years. Here you'll find a chart that shows the increase in the annual exclusion gift amount from 1997 through 2009.
The annual amount exempt from the federal gift tax, called the annual gift tax exclusion, was indexed for inflation beginning in 1997 and has slowly increased over the years. Here you'll find a chart that shows the increase in the annual exclusion gift amount from 1997 through 2009.
How to Minimize Estate Taxes
Currently the exemption from federal estate taxes is $3,500,000. Many states also assess estate taxes and/or inheritance taxes on the assets owned by their residents and real estate owned by nonresidents. For people whose estates are taxable at the state and/or federal level, they have five options for reducing their estate tax bill.
Currently the exemption from federal estate taxes is $3,500,000. Many states also assess estate taxes and/or inheritance taxes on the assets owned by their residents and real estate owned by nonresidents. For people whose estates are taxable at the state and/or federal level, they have five options for reducing their estate tax bill.
Would You Consider Moving to Avoid State Estate Taxes?
Do people really move to a new state to avoid estate taxes? I say yes because in my 14 years of experience as an estate planning attorney, I'm going to estimate that at least half of my clients have changed their primary residence from a state that collects an income tax and/or an estate tax to a state that doesn't collect an income tax or an estate tax. Would you move to avoid estate taxes?
Do people really move to a new state to avoid estate taxes? I say yes because in my 14 years of experience as an estate planning attorney, I'm going to estimate that at least half of my clients have changed their primary residence from a state that collects an income tax and/or an estate tax to a state that doesn't collect an income tax or an estate tax. Would you move to avoid estate taxes?
Where Will the Cash Come From to Pay Your Estate Tax Bill?
Estate taxes are due and payable nine months after your date of death, and the IRS or state revenue department won't accept a piece of real estate, diamond ring, or stock in your business for payment. Your Personal Representative or Administrative Trustee will thus face the challenge of determining where the cash will come from to pay the taxes. Here are the four options for paying estate taxes.
Estate taxes are due and payable nine months after your date of death, and the IRS or state revenue department won't accept a piece of real estate, diamond ring, or stock in your business for payment. Your Personal Representative or Administrative Trustee will thus face the challenge of determining where the cash will come from to pay the taxes. Here are the four options for paying estate taxes.
Which of Your Beneficiaries Will Bear the Estate Tax Burden?
If your estate is taxable for state and/or federal estate tax purposes, then you'll need to decide which of your beneficiaries will bear the estate tax burden before receiving their inheritance.
If your estate is taxable for state and/or federal estate tax purposes, then you'll need to decide which of your beneficiaries will bear the estate tax burden before receiving their inheritance.
Who is Responsible for Paying Your Estate Tax Bill?
If your estate is taxable for state and/or federal estate tax purposes, then you'll need to understand who will be responsible for signing and filing your estate tax return and writing the check to pay the taxes that are due.
If your estate is taxable for state and/or federal estate tax purposes, then you'll need to understand who will be responsible for signing and filing your estate tax return and writing the check to pay the taxes that are due.
How Much Life Insurance Do You Need?
If you don’t have enough life insurance, you could put your family in a difficult situation upon your death, but having too much could mean you are throwing money out the window. So, how much life insurance do you need?
If you don’t have enough life insurance, you could put your family in a difficult situation upon your death, but having too much could mean you are throwing money out the window. So, how much life insurance do you need?