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 Atlantic Mine, MI

A Primer on Estate & Inheritance Taxes in Atlantic Mine, MI


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 MI 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 MI Power of Attorney Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Related Legal Services near Atlantic Mine, MI
F. Mark Hugger
2020 Hogback Rd Suite 13
Ann Arbor, MI 48105
(734) 975-9150
Criminal Law Attorneys, Attorneys
Rademaker Law PC
2920 Fuller Ave NE
Grand Rapids, MI 49505
(616) 364-8791
Divorce Attorneys, Attorneys, Criminal Law Attorneys, Family Law Attorneys, DUI & DWI Attorneys
Rademaker & Kelley PC Law Group of
2920 Fuller Ave NE
Grand Rapids, MI 49505
(616) 364-8791
Accident & Property Damage Attorneys,  Family Law Attorneys,  Attorneys,  Criminal Law Attorneys,  D
Sevick Law PLLC
2002 Hogback Road, Suite #11
Ann Arbor, MI 48105
(888) 473-8425
Attorneys, Legal Service Plans, Elder Law Attorneys, General Practice Attorneys, Real Estate Attorne
Leah Gatch Tremonti
2020 Hogback Rd Ste 13
Ann Arbor, MI 48105
(734) 677-7900
Attorneys, Legal Service Plans
Park Soo
3055 Plymouth Rd
Ann Arbor, MI 48105
(734) 996-7777
General Practice Attorneys, Attorneys
Rabideau Christopher
2922 Fuller Ave NE # B118
Grand Rapids, MI 49505
(616) 364-6607
General Practice Attorneys, Attorneys
Mc Croskey Law Offices
2922 Fuller Ave NE Ste 118
Grand Rapids, MI 49505
(616) 364-6607
Insurance Attorneys,  Attorneys,  Social Security & Disability Law Attorneys,  Personal Injury Law A
Metasystems
3422 Autumn Ln
Ann Arbor, MI 48105
(734) 332-6115
Attorneys Support & Service Bureaus
C Frederick Robinson
2501 N Saginaw St
Flint, MI 48505
(810) 234-5856
Attorneys, Legal Service Plans
Fifelski Legal PLC
2002 Hogback Rd Ste 20
Ann Arbor, MI 48105
(734) 677-5825
Criminal Law Attorneys, Legal Service Plans
Irons, Joan L
2920 Fuller Ave NE
Grand Rapids, MI 49505
(616) 364-5490
Divorce Attorneys,  Attorneys,  Family Law Attorneys,  Adoption Law Attorneys,  Child Custody Attorn
Sweeney Law Offices
2035 Hogback Rd Ste 207
Ann Arbor, MI 48105
(734) 926-5297
Attorneys,  General Practice Attorneys,  Bankruptcy Services,  Bankruptcy Law Attorneys
Management Service For Pros
2243 Oakwood Ave NE
Grand Rapids, MI 49505
(616) 363-5200
Attorneys Support & Service Bureaus,  Attorneys Referral & Information Service,  Attorneys,  Legal S
McCroskey Law
2922 Fuller Ave NE
Grand Rapids, MI 49505
(616) 365-5179
Accident & Property Damage Attorneys, Personal Injury Law Attorneys, Attorneys
Pear Sperling Eggan & Daniels PC
24 Frank Lloyd Wright Dr
Ann Arbor, MI 48105
(734) 665-4441
Family Law Attorneys,  Business Law Attorneys,  Arbitration & Mediation Attorneys,  Arbitration Serv
Kempner David E
24 Frank Lloyd Wright Dr # 1
Ann Arbor, MI 48105
(734) 665-4441
Attorneys, Legal Service Plans
Dellenbusch Caroline
2944 Fuller Ave NE
Grand Rapids, MI 49505
(616) 451-4242
Attorneys, Legal Service Plans
Hogan & Associates PC
2156 Plainfield Ave NE
Grand Rapids, MI 49505
(616) 214-3389
Bankruptcy Law Attorneys,  Attorneys,  Real Estate Attorneys,  Wills, Trusts & Estate Planning Atto
Total Attorneys - Bankruptcy
PO Box 271900
Afton, MI 49705
(231) 994-3277
Bankruptcy Law Attorneys,  Attorneys,  Banking & Mortgage Law Attorneys,  Bankruptcy Services,  Lega
Labell William & Karen
59897 Apple St
Allouez, MI 49805
(906) 337-2546
General Practice Attorneys
Phillips Linda A
2045 Hogback Rd
Ann Arbor, MI 48105
(734) 663-2443
Attorneys, Family Law Attorneys, Wills, Trusts & Estate Planning Attorneys
Michael Nicholson
265 High Orchard Ln
Ann Arbor, MI 48105
(734) 213-1987
Attorneys, General Practice Attorneys
Hulswit David E PLC
2922 Fuller Ave NE # B211
Grand Rapids, MI 49505
(616) 464-1119
Attorneys,  Labor & Employment Law Attorneys,  Federal Law Attorneys,  Employee Benefits & Worker Co
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US