To be able to position your assets optimally, you must understand the parameters of the federal estate tax. Topics covered in this white paper include: Estate Tax Credit or Exclusion Unlimited Marital Deduction Conclusion Click here to read the whole article or download the PDF. … [Read more...] about Free Report: What is the Estate Tax Marital Deduction?
Will My Heirs be Forced to Pay Inheritance Taxes from Roy W. Litherland An inheritance tax is a levied on transfers to each individual non-exempt heir. Learn more about inheritance taxes in San Jose California in this presentation. … [Read more...] about Will My Heirs Be Forced to Pay Inheritance Taxes in San Jose California?
Estate planning for high net worth individuals can be complicated because of taxes on asset transfers. We have an estate tax, a gift tax, and a generation-skipping transfer tax. All of these taxes are considered to be unified by the Internal Revenue Service. As a result, you can't really understand one of them without understanding all of them. Before we explain the generation-skipping transfer tax, we will look at the other two federal taxes on asset transfers. Federal Estate Tax The federal … [Read more...] about What Is the Generation-Skipping Transfer Tax?
There are some questions that arise with regard to taxes on inheritances. In this post we will look at a basic overview. Inheritance Taxes There is such a thing as an inheritance tax per se. An inheritance tax is levied on transfers to each nonexempt person who is receiving an inheritance. There is no inheritance tax on the federal level, but there are some states in the union that impose inheritance taxes on the state level. Our firm practices law in the state of California. Here in … [Read more...] about Do People I Name in My Will Pay Taxes on Their Inheritances?
The federal estate tax currently carries a maximum rate of 40 percent, and the amount of the exclusion is $5.34 million. These parameters were supposedly made permanent when the American Taxpayer Relief Act of 2012 was enacted. Of course, nothing is truly permanent when it comes to tax laws. Each year a budget must be passed, and there are always going to be proposed changes to existing laws. With this in mind, a new budget has been proposed for 2015 by the White House. Provisions contained … [Read more...] about Proposed 2015 Budget Would Change Estate Tax Parameters
When you hear about the existence of the federal gift tax, you may wonder if it is possible to give tax-free gifts to your children. The answer is yes and no. A Look at the Gift Tax The gift tax exists to close a loophole. The estate tax was first implemented in 1916. Originally, there was no gift tax to go along with it. As a result, people who were exposed to the estate tax gave away assets while they were living to avoid the death tax. As a response, the gift tax was implemented a few … [Read more...] about Can I Give Tax-Free Gifts to My Children?
Since you pay taxes on income, you may wonder if you have to report an inheritance that you may receive when you file your income tax returns. The answer is no, in general your inheritance will not be subject to income taxes. However, if you inherited something that subsequently appreciated, the appreciation could be taxable. As the recipient of the inheritance, you don't have to pay income taxes. But, taxation can be a factor when you look at the big picture. There is an estate tax in place, … [Read more...] about Do I Pay Taxes When I Inherit Money?
It is definitely a good idea to be concerned about the prospect of your estate being taxed as it is being passed on to your loved ones. If your assets are exposed to the estate tax in California, you should definitely discuss estate tax efficiency strategies with a licensed estate planning attorney. Who is exposed to the estate tax, and who is not? The answer to this question can be found by identifying the dividing line. It exists in the form of the federal estate tax credit or exclusion. In … [Read more...] about Estate Tax Exclusion in Campbell California: How Can I Leave My Estate to My Spouse Free of Taxation?
The estate tax parameters are subject to change, and over the years some of these changes have been significant. In other cases, relatively minor but notable adjustments are made. When you maintain an ongoing relationship with your estate planning attorney, you can always be apprised of new developments as they take place so you will never be behind the curve. Estate planning is an ongoing process, and revisions are likely to be necessary as time goes on. Responsible people will want to be … [Read more...] about 2014 Gift and Estate Tax Unified Credit Increased
You may be surprised to hear that the gifts that you give to others are all taxable unless you are giving the gift to your spouse. The reason why you probably do not incur tax expenses when you give people birthday gifts is because of the fact that there is an annual gift tax exclusion. Unified Federal Gift & Estate Tax Before we get into the annual gift tax exclusion, we should explain the unified federal gift and estate tax from an overview. When you transfer assets to others, either … [Read more...] about What Is the Annual Gift Tax Exclusion?