How Can I Reduce My Estate Tax Upon My Death?
Federal Estate Taxes are only charged against Estates with net values in excess of the amount set by the law in place at the time of the person's death. The values change from time to time. For example, the amount that exempt from Federal Estate Tax in 2004-2005 was $1.5 million ($3 million if married); $2 million in 2006 through 2008 ($4 million if married); $3.5 million in 2009 ($7 million if married) and then in 2010 there is scheduled not to be any federal estate tax.
If you think your Estate will exceed whatever the maximum net estate value is at the time of your death, then the assistance of a qualified estate planning attorney is highly recommended. There may be ways, for example, to reduce the value of your estate at death by making gifts throughout your lifetime, transferring assets to a spouse and taking advantage of any marital deductions, and other wealth transfer mechanisms. These are often complicated matters requiring the assistance of legal counsel.
Other Estate Taxes FAQs
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Q:
What Is An Estate Tax?
A: The Estate Tax is a tax on the value of your property transfered to your hiers upon your death. The federal government allows every person to give away, either … More -
Q:
What is the death tax and how does it affect estate planning?
A: The “death tax” is another term for the estate tax. The gift tax is also a tax related to estate tax. These two taxes are commonly known as … More -
Q:
What is the estate tax exemption and how is it calculated?
A: Broadly speaking, the estate tax is calculated on the amount in an individual’s estate at the time of their death. In 2012, if an individual’s estate is … More -
Q:
What is gift tax and how does it apply to making lifetime gifts?
A: In 2012, individuals are allowed to make lifetime gifts of up to $5,133,000, and couples are allowed to make lifetime gifts of up to $10,266,000 before the 35% … More -
Q:
Why is there a key difference between estate tax in 2012 and 2013?
A: The current Estate Tax system is set to expire in 2013. Next year, an individual will have an estate and gift tax exemption of $1,000,000. A couple does not have … More -
Q:
Are Non-Resident and Resident Aliens treated the same as US residents for the purposes of transfer taxes?
A: No. Gift and estate tax exemptions are available for US citizens and domiciliaries, however additional planning should be completed for non-resident and resident … More -
Q:
Why should I plan my estate in 2012?
A: The gifting that can be completed tax-free in 2012 is significant. If one has a large estate it may benefit them to take advantage of the current large gift tax … More -
Q:
Do I need an attorney to help with my estate planning?
A: Proper estate planning is vital in order to optimize the exemptions you may be eligible for and to maximize the amount your estate can retain. It is important to … More
Estate Planning Sub-categories
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