When you are evaluating any potential estate tax exposure you may have, you should understand the fact that the value of your home is certainly going to count. Who Is Exposed? How do you know if you are exposed to the estate tax or not? There is a federal estate tax exclusion or credit. In 2014 the amount of this exclusion is $5.34 million. A base of $5 million was put into place for the 2011 calendar year. It is annually adjusted for inflation. Next year you may see a slightly higher figure … [Read more...] about What Is a Qualified Personal Residence Trust?
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?
There is a unified tax exclusion in California that separates those who must pay transfer taxes from those who are exempt. The lifetime unified exclusion at the present time is $5.34 million in 2014. There is a gift tax and an estate tax. The two taxes are unified. As a result of this unification, the exclusion applies to gifts that you give while you are living, coupled with the value of your estate as it is being transferred to your heirs after your passing. It should be noted that there is … [Read more...] about Should You Use Your Unified Tax Exclusion in California While You Are Still Alive?
The process of estate planning is going to mean different things for different people. What is important to one family may not be important to another. One of the deciding factors will be the extent of the estate in question. If you are simply transferring a relatively modest store of assets to your children and there is no estate tax responsibility, you are in a particular situation. However, if you have been extraordinarily successful throughout your life from a financial perspective, you must … [Read more...] about California Legacy Wealth Planning: What Is It?