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 East Leroy, MI

Estate Taxes, Gift Taxes and Inheritance Taxes in East Leroy, MI


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 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
Related Legal Services near East Leroy, MI
Crosby & Associates P
27322 23 Mile Rd
Chesterfield, MI 48051
(586) 948-9144
Accident & Property Damage Attorneys, Attorneys
Jennifer L Ward
115 E Bellevue St
Leslie, MI 49251
(517) 589-8220
Attorneys
Total Attorneys - Divorce
PO Box 273869
Leslie, MI 49251
(517) 258-7211
Divorce Attorneys,  Attorneys,  Family Law Attorneys,  Legal Service Plans
Danielson Group PC
55921 Gratiot Ave
Chesterfield, MI 48051
(586) 749-6400
Attorneys, Legal Service Plans
K C Baran
5151 Harp Dr
Linden, MI 48451
(810) 936-5211
Attorneys,  Legal Service Plans,  Criminal Law Attorneys,  Bankruptcy Law Attorneys,  Estate Plannin
Marc Hanna Attorney
7263 Lobdell Rd
Linden, MI 48451
(810) 458-4658
Bankruptcy Law Attorneys, Attorneys, Legal Service Plans
Pencak Christopher PC
27322 23 Mile Rd
Chesterfield, MI 48051
(586) 598-4650
Criminal Law Attorneys, Attorneys
William Donnelly Jr. Atty
209 S Canal St
Lake City, MI 49651
(231) 839-3111
General Practice Attorneys, Attorneys
Sharp Larry G
5041 Owen Rd
Linden, MI 48451
(810) 629-1400
Attorneys
Tonya L. Corrado, PLC
46958 Gratiot Ave
Chesterfield, MI 48051
(586) 330-0630
Attorneys, Family Law Attorneys, Estate Planning Attorneys
Metzen E B Inc
28200 23 Mile Rd
Chesterfield, MI 48051
(586) 949-0600
Bankruptcy Law Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US