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!
 
 

A Primer on Estate & Inheritance Taxes in Eaton Park, FL

A Primer on Estate & Inheritance Taxes in Eaton Park, FL


Me and my dad are the biggest promoters of an estate tax in the US. It's not a popular position.
 
- Bill Gates


When you die, you leave your home, your possessions, your money, and other things of monetary value to spouses, children, family members, friends, charity or religious institutions. The government wants its share. Some argue that estate taxes can provide for future generations. Others argue that is robs inter-generational businesses of the capital they need to keep growing.

Your estate may be subject to inheritance tax, estate tax, state and federal tax statutes, and a host of exemptions that can pass more of the estate to inheritors of your choosing.

What are the differences between Estate Taxes and Inheritance Taxes?

Let's start with estate tax. Your estate is the total of your possessions and debts left behind when you die. An executor, either named in the will or appointed by law, will pay off outstanding debts, cover funeral expenses, and administrative costs (e.g. executor's fees). If necessary, executors may liquidate property to pay taxes, debts, or fees. After federal and state estate taxes are paid, the remainder goes to the heirs. So, the estate tax is a tax on the total amount of the estate, after creditors are paid but before any heirs get their bequest. The tax is paid by the estate itself.

Inheritance tax occurs after the heirs receive their payouts. It is a tax on the amount received and is paid by the heir. Inheritance taxes are levied by the states. This means that in many cases an estate is taxed twice -- first by the federal estate tax, then by the state inheritance tax.

The estate includes cash on hand, bank accounts, financial assets (stocks, bond, mutual funds, etc.), real estate, automobiles, boats, art pieces or rare collections, personal property, debts owed to the estate, business interests, etc. An estate is made up of all of these things. An appraiser will determine the fair market value of everything to determine the taxable value of the estate.

Inheritance Tax Exemptions

For large estates, sophisticated estate planners will work with the family and utilize trusts, charitable donations, non-taxable gifts and other techniques to meet the family's needs and minimize the tax burden.

For small estates, there are exemptions are applied to the taxable amount before estate taxes are collected. Exemptions can be relation based and amount-based.


There is an exemption when the estate is passed from a deceased person to their US citizen spouse. It will not be subject to any federal estate tax. States that levy an estate tax generally follow the federal government's rules for this, as well. If the estate is passed to children, siblings or golfing buddies, the exemption doesn't apply.

Amount-based exemptions are $5.34 million for an individual, $10.68 million for a couple as of 2014. It is indexed for inflation, so it will probably grow over time.

State inheritance taxes vary a great deal and can make things much more complicated. There might be exemptions for some family members, or different tax rates depending on whether you are a spouse, a child or just a friend. Many states tie their inheritance tax directly to the federal estate tax and exemption rate. Some have much lower thresholds than the federal threshold.

There are a few other miscellaneous deductions, such as a mortgage, usually deducted from the estate's value before taxation. Family businesses and farms may be taxed at a lower rate. Inheritance taxes tend to be set up on a progressive scale, meaning as the value of the estate increases, the tax rate rises and the taxes increase exponentially.

 
Personalize & Print a Free FL 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
 
Personalize & Print a Free FL Power of Attorney Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Related Legal Services near Eaton Park, FL
Cynamon Jeff
757 Arthur Godfrey Rd
Miami Beach, FL 33140
(305) 535-9992
Real Estate Attorneys, Attorneys, General Practice Attorneys, Legal Service Plans
Daley, Paul F Daley & Assoc Pl
7331 Office Park Pl # 3
Melbourne, FL 32940
(321) 504-9935
Estate Planning Attorneys, Attorneys, Personal Injury Law Attorneys, Bankruptcy Law Attorneys
Copeland W Thomas
190 SW Range Ave
Madison, FL 32340
(850) 973-9909
Business Bankruptcy Law Attorneys,  Attorneys,  General Practice Attorneys,  Bankruptcy Law Attorney
Landman Alan H
7195 Murrell Rd Ste 102
Melbourne, FL 32940
(321) 242-9800
Criminal Law Attorneys, Attorneys, Legal Service Plans
Curtis Flajole
21 Suntree Pl # 100
Melbourne, FL 32940
(321) 242-9777
Traffic Law Attorneys, Attorneys, Criminal Law Attorneys
Kontos, James G PA
21 Suntree Pl
Melbourne, FL 32940
(321) 242-9777
Attorneys,  Traffic Law Attorneys,  Criminal Law Attorneys,  DUI & DWI Attorneys
Thompson, Jeffrey G PA
1329 Bedford Dr
Melbourne, FL 32940
(321) 473-9753
Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Divorce Attorneys,  DUI & DWI Attorneys,
Able Legal Nurse Consultants Inc
5075 Industry Dr
Melbourne, FL 32940
(321) 259-9600
Attorneys Support & Service Bureaus, General Practice Attorneys, Attorneys
Whitlock, Allison
5075 Industry Dr
Melbourne, FL 32940
(321) 259-9600
Attorneys Support & Service Bureaus
Margalli, Jiulio PA
501 Whitehead St
Key West, FL 33040
(305) 295-9382
Family Law Attorneys, Attorneys, Criminal Law Attorneys, Legal Service Plans
Scher Todd G
5600 Collins Ave # 15B
Miami Beach, FL 33140
(305) 861-9252
General Practice Attorneys, Attorneys, Legal Service Plans
Becker & Poliakoff PA
6767 N Wickham Rd
Melbourne, FL 32940
(321) 255-9100
Litigation & Tort Attorneys, Attorneys
Rush, Krista L PA
1301 Bedford Dr
Melbourne, FL 32940
(321) 752-9009
Attorneys, Social Security & Disability Law Attorneys
Rush, Krista L PA
10 Suntree Pl
Melbourne, FL 32940
(321) 752-9009
Social Security & Disability Law Attorneys, Attorneys
Scales III Edwin
201 Front St
Key West, FL 33040
(305) 292-8950
Arbitration & Mediation Attorneys, Attorneys, Mediation Services
Viera Melbourne Dean Mead
8240 Devereux Dr Ste 100
Melbourne, FL 32940
(321) 259-8900
Estate Planning Attorneys,  Attorneys,  Family Law Attorneys,  Tax Attorneys,  Divorce Attorneys,  B
Highsmith, Robert E
3158 Northside Dr
Key West, FL 33040
(305) 296-8851
Wills, Trusts & Estate Planning Attorneys, Attorneys, General Practice Attorneys, Estate Planning At
Onek & Mawn PA
1329 Bedford Dr
Melbourne, FL 32940
(321) 264-8800
Legal Service Plans,  Criminal Law Attorneys,  Attorneys,  Bail Bonds,  Domestic Violence Attorneys,
Becker & Poliakoff PA
422 Fleming St
Key West, FL 33040
(305) 295-8790
Litigation & Tort Attorneys, Attorneys
Crutchfield & Wilson PA
5575 N Highway 1
Melbourne, FL 32940
(321) 752-8787
Juvenile Law Attorneys, Attorneys
Moyer Bradley R
6245 Lake Osprey Dr
Sarasota, FL 34240
(941) 552-8677
Real Estate Attorneys, Attorneys
Sarasota Personal Injury Attorney Services
2716 Bee Ridge Rd.#240
Sarasota, FL 34240
(941) 404-8594
Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Personal Injury Law Attorneys,  Traffic
Hurlock Ann F
422 Fleming St
Key West, FL 33040
(305) 293-8580
General Practice Attorneys, Attorneys
Davila Gregory D
1111 12th St
Key West, FL 33040
(305) 293-8554
Civil Litigation & Trial Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US