Where you die matters. While you’ll pay the same federal estate tax no matter where you die, 1/3 of the states have a separate estate or inheritance tax. The most populous state, California, is the latest state to consider adding a state estate tax. Read on to learn more. When and Where You Die Matters … [Read more...] about When and Where You Die Matters
A new estate tax proposal would lower the amount passing free from tax to $3.5 million and increase the rates of taxation. It would also eliminate some tried and true strategies for reducing estate taxation. Read on to learn more about this proposal and its prospects. New Estate Tax Proposal … [Read more...] about New Estate Tax Proposal
A trust may be taxed as either a grantor trust or a nongrantor trust. Each type of trust has advantages and disadvantages. This article examines a grantor trust and situations in which it might be useful. Grantor Trusts Provide Flexibility and Ease … [Read more...] about Grantor Trusts Provide Flexibility and Ease
Estate planning for the international client can be tricky. This article looks at the estate tax treatment of U.S. citizens and non-resident aliens. The article then looks at an example of someone who lived in the U.S. and then departed. Planning for the International Client … [Read more...] about Planning for the International Client
The estate tax is controversial to say the least because there seems to be little if any logic to support it. You work all your life and pay income tax and payroll or self-employment tax on all of your earnings. In the end you have a fraction of what you actually made left over after paying these taxes. With this remainder you go about your business, but as you use it you are taxed again and again continually. You must pay sales tax on all of your purchases, and there are property taxes, … [Read more...] about Opting Out Of 2010 Estate Tax
The recent crisis that we had in Washington revolving around the raising of the debt ceiling brought a lot of things out into the open. Just about everyone agreed that there should be cuts in spending. The disagreements revolved around what should be cut, how much should be cut, and whether or not there should be increases in federal revenue mandated. The way that revenue is increased is by raising taxes. For now, that isn't going to happen. But there is still sentiment out there for raising … [Read more...] about Will Efforts To Increase Revenue Include Estate Tax Hike?
The estate tax is something that you have to take very seriously when you are engaged in the process of inheritance planning because it can have life-changing impact on succeeding generations. As of this writing the maximum rate of the estate tax is 35%, and the exclusion sits at $5 million. This is an incredibly big bite but it is going to get worse if the laws stay the same as they are right now. Unless there is new legislation passed in the interim, the top rate of the estate tax in 2013 is … [Read more...] about Avoiding Multiple Impositions Of The Estate Tax
One of the most enjoyable things you can do is to give a gift to someone you love. When you see family members light up and look at you with a genuine feeling of gratitude after you have given that carefully selected gift the meaning of the phrase "it is better to give than to receive" really hits home. This is something that you may want to keep in mind when you're planning your estate. There is only one thing potentially stopping you from giving gifts to your loved ones while you are still … [Read more...] about Inheritance Planning: Educational Gifts Show You Care
You will sometimes hear people say that you don't have to worry about the estate tax because it is something that is only imposed on people who are rich. When you hear this you may want to engage in some critical thinking because blindly inculcating this notion into your thought processes as though it was a fact could wind up costing your family a great deal of money after you pass away. What is your definition of rich? If Bill Gates and Warren Buffett are rich in your mind and you are thinking … [Read more...] about Estate Tax: Only For The Rich?
One of the things that must be determined when you are engaged in the process of estate planning is whether or not your estate is going to be exposed to the estate tax. Believe it or not, this is something that is much easier said than done because the estate tax exclusion moves around a lot, sometimes without much advance warning. At the present time the estate tax exclusion is $5 million and the maximum rate of the tax is 35%. So if your estate is worth less than $5 million you are not exposed … [Read more...] about Estate Tax Poised To Bite