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 Nalcrest, FL

A Primer on Estate & Inheritance Taxes in Nalcrest, 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 Nalcrest, FL
Sharon L. Azoulay
8525 SW 92nd St # B9
Miami, FL 33156
(305) 598-9988
Automobile Accident Attorneys,  Civil Litigation & Trial Law Attorneys,  Personal Injury Law Attorne
The Harper Law Firm
10752 Deerwood Park Blvd Ste 1
Jacksonville, FL 32256
(904) 997-9955
Personal Injury Law Attorneys
Wells Robert W
9350 S Dixie Hwy Ste 1450
Miami, FL 33156
(305) 670-9955
Environment & Natural Resources Law Attorneys, Attorneys
Jeffrey S Weiner Criminal Defense Attorneys
9130 S Dadeland Blvd
Miami, FL 33156
(305) 670-9919
Attorneys, Drug Charges Attorneys, Criminal Law Attorneys
Ellerin Hutchinson
9141 Cypress Green Drive, Suite 3
Jacksonville, FL 32256
(904) 636-9901
Child Custody Attorneys, Family Law Attorneys, Divorce Attorneys
Griffin Linda S
1455 Court St
Clearwater, FL 33756
(727) 449-9800
Wills, Trusts & Estate Planning Attorneys, Attorneys, Probate Law Attorneys, Legal Service Plans
Rodriguez, Monica L
9100 S Dadeland Blvd
Miami, FL 33156
(305) 670-9800
Medical Law Attorneys, Attorneys
Romero Christi R
7700 N Kendall Dr # 412
Miami, FL 33156
(305) 595-9697
Real Estate Attorneys, Attorneys
Gary W Pollack PA
9350 S Dixie Hwy Fl 10
Miami, FL 33156
(305) 373-9676
Corporation & Partnership Law Attorneys, Attorneys, Legal Service Plans
Millan Stephen T
9155 S Dadeland Blvd # 1412
Miami, FL 33156
(305) 670-9655
Attorneys,  Criminal Law Attorneys,  Business Bankruptcy Law Attorneys,  Bankruptcy Law Attorneys
Woodbury & Santiago PA
9100 S Dadeland Blvd
Miami, FL 33156
(305) 669-9570
Corporation & Partnership Law Attorneys, Attorneys, Business Law Attorneys
Pennington Moore Wilkinson
1230 S Myrtle Ave
Clearwater, FL 33756
(727) 449-9553
Real Estate Attorneys, Patent, Trademark & Copyright Law Attorneys, Attorneys
Denaro Jack M
7700 N Kendall Dr # 504
Miami, FL 33156
(305) 274-9550
Criminal Law Attorneys, Attorneys, General Practice Attorneys
Mark Dienstag
11400 SW 81st Rd
Miami, FL 33156
(786) 581-9516
Civil Litigation & Trial Law Attorneys, Attorneys, General Practice Attorneys
Sapurstein & Bloch
9700 S Dixie Hwy
Miami, FL 33156
(305) 670-9500
Bankruptcy Law Attorneys,  Attorneys,  Business Bankruptcy Law Attorneys,  General Practice Attorney
Steeves Michael B
1414 Court St
Clearwater, FL 33756
(727) 441-9478
Family Law Attorneys,  Attorneys,  Divorce Attorneys,  General Practice Attorneys
Steeves Michael B Pa Attorney
1414 Court St
Clearwater, FL 33756
(727) 441-9478
Family Law Attorneys, Attorneys, Divorce Attorneys, Child Custody Attorneys, General Practice Attorn
Ileana Ruiz Zapico, P.A.
7700 N Kendall Dr Ste 809
Miami, FL 33156
(305) 412-9356
Probate Law Attorneys, Attorneys, Wills, Trusts & Estate Planning Attorneys
The Currie Law Firm, P.C.
10151 Deerwood Park Blvd Building 200, Suite 250
Jacksonville, FL 32256
(904) 410-9293
Accident & Property Damage Attorneys, Personal Injury Law Attorneys, Litigation & Tort Attorneys
Montoya Law Firm, P.A.
9100 S Dadeland Blvd, Suite 1500
Miami, FL 33156
(305) 445-9292
Business Law Attorneys,  Personal Injury Law Attorneys,  Admiralty & Maritime Law Attorneys,  Litiga
Rachel A. Compton, P.A.
9432 Baymeadows Road, Ste 145
Jacksonville, FL 32256
(904) 619-9281
Family Law Attorneys,  Contract Law Attorneys,  Personal Injury Law Attorneys,  Employment Discrimin
Santos Stokes LLP
9155 S Dadeland Blvd # 1208
Miami, FL 33156
(305) 670-9228
Business Litigation Attorneys, Attorneys, Business Law Attorneys
Sina Negahbani
8500 SW 92nd St
Miami, FL 33156
(305) 595-9078
Attorneys, Consumer Law Attorneys, Labor & Employment Law Attorneys
Mc Cahill Clinton T
305 6th St
Port Saint Joe, FL 32456
(850) 229-9040
General Practice Attorneys, Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US