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 Michael, IL

Estate Taxes, Gift Taxes and Inheritance Taxes in Michael, IL


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 IL 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 Michael, IL
Lookofsky Walter B
PO Box 379
Shelbyville, IL 62565
(217) 774-9639
Attorneys
Freeman John V
220 N Morgan St
Shelbyville, IL 62565
(217) 774-9595
General Practice Attorneys, Attorneys, Legal Service Plans
Ford, Curt - Nash Nash Bean & Ford
5030 38th Ave
Moline, IL 61265
(309) 762-9368
Estate Planning Attorneys, Attorneys, Elder Law Attorneys, Wills, Trusts & Estate Planning Attorneys
Hanna Steven W Atty
1528 6th Ave
Moline, IL 61265
(309) 797-9000
Attorneys, Criminal Law Attorneys, DUI & DWI Attorneys, Legal Service Plans, Traffic Law Attorneys
Hanna & Ruud,
1528 6th Avenue
Moline, IL 61265
(309) 797-9000
Attorneys, Criminal Law Attorneys
Hanna & Ruud,
1528 6th Avenue
Moline, IL 61265
(309) 797-9000
Criminal Law Attorneys, Attorneys
PCS Healthcare Consultants
8351 W 99th St
Palos Hills, IL 60465
(708) 430-8860
Attorneys Referral & Information Service, Legal Consultants-Medical
Thompson Linnea E
5030 38th Ave
Moline, IL 61265
(309) 797-8787
Attorneys, Family Law Attorneys, Wills, Trusts & Estate Planning Attorneys, Real Estate Attorneys, A
Braverman William C
10059 S Roberts Rd Ste 1C
Palos Hills, IL 60465
(708) 598-8720
Criminal Law Attorneys, Attorneys, Legal Service Plans
Zanayed Law Office
8150 W 111th St
Palos Hills, IL 60465
(708) 671-8624
General Practice Attorneys, Attorneys
Califf & Harper Pc
506 15th St # 600
Moline, IL 61265
(309) 764-8300
Estate Planning Attorneys, Attorneys, Tax Attorneys, Business Law Attorneys, Real Estate Attorneys,
Derek Hancks PC
1504 7th St # 2
Moline, IL 61265
(309) 797-8188
Attorneys, Legal Service Plans, Bankruptcy Law Attorneys
Attorney Ray Choudhry
1630 5th Ave., Suite 200
Moline, IL 61265
(309) 797-8000
Personal Injury Law Attorneys,  Medical Law Attorneys,  General Practice Attorneys,  Juvenile Law At
Choudhry, Ray - Mid America Law Offices Ltd
1630 5th Ave # 200
Moline, IL 61265
(309) 797-8000
Social Security & Disability Law Attorneys,  Attorneys,  Family Law Attorneys,  Malpractice Law Atto
Neubauer & Johnston
701 E Hanover St # A
New Baden, IL 62265
(618) 588-7767
Attorneys, Family Law Attorneys, Divorce Attorneys, Wills, Trusts & Estate Planning Attorneys, Real
Metropolitan Family Services
10537 S Roberts Rd
Palos Hills, IL 60465
(708) 401-7687
Marriage, Family, Child & Individual Counselors, Social Service Organizations, Mental Health Service
Meersman H Moss
2006 16th St
Moline, IL 61265
(309) 762-7333
General Practice Attorneys, Attorneys
Benveniste Eric
PO Box 1166
Northbrook, IL 60065
(847) 498-6868
Attorneys
Maurizi Ernest
1618 Valley Ridge Ct
Naperville, IL 60565
(630) 946-6841
General Practice Attorneys, Attorneys, Legal Service Plans
Christine R Piesiecki
9800 S Roberts Rd
Palos Hills, IL 60465
(708) 233-6833
Social Security & Disability Law Attorneys,  Attorneys,  Wills, Trusts & Estate Planning Attorneys,
Griffin & Gallagher
10001 S Roberts Rd
Palos Hills, IL 60465
(708) 598-6800
General Practice Attorneys, Attorneys, Legal Service Plans
Farano Jr John
7836 W 103rd St
Palos Hills, IL 60465
(708) 598-6626
General Practice Attorneys, Attorneys
Delair Sidney C
1515 Welton Ct
Naperville, IL 60565
(630) 369-6550
Attorneys, Legal Service Plans
Coogan, James A Dwyer Mc Carthy & Assoc
10001 S Roberts Rd
Palos Hills, IL 60465
(708) 598-6060
Litigation & Tort Attorneys, Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US