12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
 
FINANCIAL & MARITAL

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
 

Estate Taxes, Gift Taxes and Inheritance Taxes in Zip Code 92691

Estate Taxes, Gift Taxes and Inheritance Taxes in Zip Code 92691


In this world nothing can be said to be certain, except death and taxes.
 
- Benjamin Franklin


With the passage of the American Taxpayer Relief Act, many federal and state tax rules about Estate Taxes appear to be finally settled. The majority of estates are still exempt from all state and federal taxes.

A substantial amount of property can be bequeathed or given out tax -free because most estates have no obligation to pay federal estate tax or gift tax. This federal gift tax is also known as unified gift and estate tax. You can give or leave your property as long as they do not reach the assessed value of 5.34 million as of the year 2014. Assessment of the property's value is done after a person dies to check if $5.34 million tax free limit is exceeded.

In What Circumstances Does an Estate Have to Pay an Estate Tax?

As a general rule, only estates larger than $ 5.34 million have to pay federal estate taxes.

• The personal estate tax exemption. The first $ 5.34 million is exempted from taxes. There are taxes imposed on properties that exceed exemption limit $5.34 million (as of year 2014). This amount is indexed for inflation, so increases in the future are likely. Most estates in the US do not exceed this exemption amount, so that most people can leave their assets and properties to their heirs tax free. Due to the unified gift and estate tax, prior gifts can reduce remaining personal exemption on the estate.


• Marital deduction. Properties left to surviving spouses are exempted from all estate taxes.

• Non-citizen spouses. The marital deduction does not apply to non-citizen spouses; only the personal estate tax exemption for properties left to the non-citizen spouses can be applied. However, your non-citizen spouse can benefit from a special trust, called a "qualified domestic trust" or QDOT. The property is left to the trust, not the spouse. The spouse is the beneficiary of the trust. There must be no other beneficiaries while the spouse is still alive. The spouse would receive income that the trust property generates and these amounts are not subject to estate tax. The QDOT must be established, and the property must be transferred to it, before the estate tax return of the deceased spouse is due. The trustee of the QDOT must be a U.S. citizen or a U.S. corporation such as a bank or trust company.


• Charitable deduction. Properties left to a tax-exempt charity are also free from estate tax.

• Special Rules for Married Couple. When a spouse dies and the estate was not able to use up entire individual tax exemption that they were entitled to, the remaining spouse can add the unused portion of the personal exemption to their estate, when they pass on. That gives the couple twice the total individual tax exemption.

• State estate taxes. Every state unique estate tax laws. Even if your estate is not large enough to owe any federal estate taxes, you may still be liable for state taxes.

Links that may be of interest:

http://money.howstuffworks.com/personal-finance/personal-income-taxes/inheritance-tax.htm
 
Personalize & Print a Free CA Last Will Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Related Legal Services near Zip Code 92691
Borchard & Callahan-A Professional Corporation
25909 Pala
Mission Viejo, CA 92691
(949) 457-9505
Attorneys, Civil Litigation & Trial Law Attorneys, Business Law Attorneys, Real Estate Attorneys, Pa
Abt Gregory D
27001 La Paz Rd Ste 454A
Mission Viejo, CA 92691
(949) 452-9446
General Practice Attorneys, Attorneys
Morrison Norah M
27281 Las Ramblas # 160
Mission Viejo, CA 92691
(949) 582-7572
Attorneys, Legal Service Plans
Myava R. Escamilla
27281 Las Ramblas, Suite 200
Mission Viejo, CA 92691
(949) 413-7565
Bankruptcy Law Attorneys,  Domestic Violence Attorneys,  Immigration Law Attorneys,  Attorneys,  Fam
ChildCustodyEvaluationsOC
22984 Via Cereza
Mission Viejo, CA 92691
(949) 378-7545
Family Law Attorneys, Attorneys
The Berkley Law Firm
27281 Las Ramblas Ste 200
Mission Viejo, CA 92691
(714) 871-6440
Business Bankruptcy Law Attorneys,  Attorneys,  Legal Service Plans,  Bankruptcy Law Attorneys
Steven Zwick Law Offices
25909 Pala Suite 340
Mission Viejo, CA 92691
(949) 699-4444
Attorneys,  Malpractice Law Attorneys,  Personal Injury Law Attorneys,  Professional Liability & Neg
Mission Viejo Bankruptcy Attorney
27281 Las Ramblas
Mission Viejo, CA 92691
(949) 203-3826
Bankruptcy Law Attorneys, Business Bankruptcy Law Attorneys
Wayne Direct Insurance
27285 Las Ramblas, Suite 225
Mission Viejo, CA 92691
(800) 461-3305
Attorneys Support & Service Bureaus, Life Insurance, Insurance
Lamar & Associates Att
27281 Las Ramblas
Mission Viejo, CA 92691
(949) 367-3121
General Practice Attorneys
Full Circle Sports Mgmt
27401 Los Altos
Mission Viejo, CA 92691
(949) 348-2663
Entertainment & Sports Law Attorneys
Carey Charles B
25910 Acero # 360
Mission Viejo, CA 92691
(949) 458-2131
Attorneys, Legal Service Plans
Mosher & Skorina
26691 Plaza Suite 200
Mission Viejo, CA 92691
(949) 582-1544
Attorneys,  Criminal Law Attorneys,  Real Estate Attorneys,  Personal Injury Law Attorneys,  Insuran
Rivers J. Morrell III
27201 Puerta Real Suite 470
Mission Viejo, CA 92691
(949) 305-1400
Accident & Property Damage Attorneys, Personal Injury Law Attorneys, Attorneys
Smisko Law Firm
26050 Acero
Mission Viejo, CA 92691
(949) 829-1299
Banking & Mortgage Law Attorneys,  Real Estate Attorneys,  Attorneys,  Estate Planning, Probate, &
Ghassemian & Associates
26400 La Alameda
Mission Viejo, CA 92691
(949) 348-1005
Corporation & Partnership Law Attorneys,  Business Law Attorneys,  Construction Law Attorneys,  Pers
Sutton & Murphy
26056 Acero
Mission Viejo, CA 92691
(949) 206-0550
Personal Injury Law Attorneys, Insurance Attorneys, Attorneys
Sweeney, James S. Attorney
26300 La Alameda Ste 410
Mission Viejo, CA 92691
(949) 582-0022
Insurance Attorneys, Attorneys, Criminal Law Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US