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Home / Archives for Taxes

Proposition 19: The California Property Tax Law That Changed Everything

Property Tax, Real Property, Prop 19, Real Property Videos

California’s Proposition 19 changed the way families think about inherited property, property tax reassessment, and long-term estate planning. For decades, many California parents could pass real estate to their children while preserving a low property tax basis under Proposition 13. That changed significantly when Proposition 19 took effect. This California property tax law now places strict limits on when children can keep a parent’s lower assessed value after inheriting property. The rules … [Read more...] about Proposition 19: The California Property Tax Law That Changed Everything

How Much Is the 2026 Federal Estate Tax Exemption?

Estate Planning, Taxes, Estate Tax, Portability, estate taxation, 2026 Estate Tax

When a new year rolls around, the government updates various parameters to account for inflation. From an inheritance planning perspective, these annual adjustments can have a meaningful impact, and the tax thresholds are especially relevant. With this in mind, many people are asking about the federal estate tax exemption for 2026. It has been established, and the increase will provide additional planning flexibility, particularly for high-net-worth individuals. 2026 Federal Estate Tax … [Read more...] about How Much Is the 2026 Federal Estate Tax Exemption?

Everything You Need to Know About Taxes on Inheritances

Taxes, Estate Tax, Estate Planning, tax, taxation, income taxation, estate taxation

You may have heard conflicting information about taxes on inheritances. Some claim you can inherit assets tax-free, while others warn of significant tax burdens. The truth is more nuanced. While most heirs do not pay direct taxes on what they receive, certain tax obligations can arise depending on the type of asset and how you handle it. Understanding these rules can help you avoid financial surprises. Inheritance Tax vs. Estate Tax: What’s the Difference? One of the biggest … [Read more...] about Everything You Need to Know About Taxes on Inheritances

Proposition 19 and Repeal the Death Tax Act (VIDEO)

Taxes, Property Tax, Real Property, California Proposition 19, Prop 19

In this vlog, Litherland, Kennedy & Associates Attorney Maggie LaBranch-Gonzales discusses the Repeal the Death Tax Act, a project of the Howard Jarvis Taxpayers Association to repeal the negative effects of Proposition 19. Please note that the direct link to the petition is: https://reinstate58.hjta.org/wp-content/uploads/2023/10/Official-Repeal-the-Death-Tax-Petition-plus-Instructions-and-Top-Funders-Sheet-October2023.pdf. YOU MUST PRINT AND SIGN THE PETITION WITH PAPER AND INK AND MAIL … [Read more...] about Proposition 19 and Repeal the Death Tax Act (VIDEO)

Tax Planning for 2023

Taxes, Estate Tax, Legal Education, Estate Planning, income tax, taxation

Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. As we start off the New Year, we need to think of…tax planning! Some years Congress tweaks the laws more than in other years. While 2022 held plenty of events: the war in Ukraine, an improved “bivalent” coronavirus vaccine addressing new coronavirus variants, the U.S. midterms elections, etc., it was a relatively quiet year for legislative changes impacting planning. … [Read more...] about Tax Planning for 2023

Do I Pay Income Taxes on Living Trust Payouts?

Asset Protection, Living Trust, Estate Planning, tax, income tax, taxation, Taxes

The revocable living trust is a very versatile estate planning tool that can be the ideal choice for a wide range of people. Before we look at the taxation question, we will explain a few of the benefits so you understand why living trusts are so effective. Probate Avoidance Some people assume that the executor of a will can act independently without supervision, but this is not the case. The will must be admitted to probate, and a court would provide supervision during the administration … [Read more...] about Do I Pay Income Taxes on Living Trust Payouts?