By: Matthew M. Shafae, AttorneyLitherland, Kennedy & Associates, APC, Attorneys at Law The “T-word” usually makes our eyes glaze over and we picture an overworked accountant wearing a green eyeshade crunching a bunch of numbers for us every April. Well, unfortunately, I can’t make them go away, but I can attempt to explain how taxes may impact your estate planning. Within the context of your estate plan, there are typically three main taxes that are relevant: the estate tax, … [Read more...] about Sorting Through the Taxes That May Impact Your Estate Plan
Can a Trust Provide Estate Tax Efficiency?
Estate tax efficiency is an important consideration for high net worth individuals. There are a number of states in the union that impose estate taxes on the state level. We practice law in California, and we get a break here, because there is no California state estate tax. However, we do have to be concerned about the federal estate tax. You may hear people say that the estate tax is only a factor for people who are very wealthy. Depending on your definition of "very wealthy," this may not be … [Read more...] about Can a Trust Provide Estate Tax Efficiency?
What Questions Should I Ask an Estate Planning Attorney?
There are a lot of things that you should know when you are devising your estate plan. If you do not act in a fully informed manner, you could make mistakes that negatively impact your loved ones. When you discuss things with a licensed estate planning attorney, you can go forward in a fully informed manner. Ultimately, you can emerge from the interaction with a personalized estate plan that ideally suits your needs. In this post we will look at some questions that you may want to ask your … [Read more...] about What Questions Should I Ask an Estate Planning Attorney?
What Is a Capital Gains Tax?
There can be taxes that come into play when you are planning your estate. You should know the facts so that there are no misconceptions. In this post we will look at these taxes, with an emphasis on the capital gains tax. Federal Transfer Taxes The tax man does not want you to be able to transfer large sums of money free of taxation. To prevent this, there is a federal estate tax, and there is a federal gift tax. These two taxes are unified under the tax code. You can transfer a certain … [Read more...] about What Is a Capital Gains Tax?
Free Report: What is the Estate Tax Marital Deduction?
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 in San Jose California?
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?
What Is the Generation-Skipping Transfer Tax?
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?
Do People I Name in My Will Pay Taxes on Their Inheritances?
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?
Proposed 2015 Budget Would Change Estate Tax Parameters
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
Can I Give Tax-Free Gifts to My Children?
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?
