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 Federal Dam, MN

Estate Taxes, Gift Taxes and Inheritance Taxes in Federal Dam, MN


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 MN 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 Federal Dam, MN
Svoboda Law Office
108 W Center St # 1
Lake City, MN 55041
(651) 345-9958
Attorneys,  Bankruptcy Services,  Bankruptcy Law Attorneys,  Criminal Law Attorneys,  Accident & Pro
Lanners & Olson Pa
12805 Highway 55 # 102
Minneapolis, MN 55441
(763) 550-9892
Divorce Attorneys, Attorneys, Family Law Attorneys, Legal Service Plans
Molever Jeff
9800 Shelard Pkwy # 212
Minneapolis, MN 55441
(763) 595-9292
General Practice Attorneys, Attorneys, Legal Service Plans
Steinbrecher Joshua M
201 W 2nd St
Hanska, MN 56041
(507) 439-6324
Attorneys
Peterson Jared D
201 W 2nd St
Hanska, MN 56041
(507) 439-6324
Attorneys
Mages Mary Key
201 W 2nd St
Hanska, MN 56041
(507) 439-6324
Attorneys
Gunderson Paul J
201 W 2nd St
Hanska, MN 56041
(507) 439-6324
Attorneys
Berens Rodenberg & O'Connor
201 W 2nd St
Hanska, MN 56041
(507) 439-6324
Attorneys, General Practice Attorneys, Legal Service Plans
Yellow Medicine Cnty Attorney
868 Prentice St
Granite Falls, MN 56241
(320) 564-5832
Attorneys
Bender Michael C & Gustafson Jean M
15 E Main St # Ll
Crosby, MN 56441
(218) 546-5299
Family Law Attorneys, Probate Law Attorneys, Attorneys
Barnum III Charles E
15 E Main St
Crosby, MN 56441
(218) 546-5178
Attorneys, Family Law Attorneys, General Practice Attorneys, Legal Service Plans
Holmstrom Gregory L
444 Holiday Rd
Granite Falls, MN 56241
(320) 564-4903
Attorneys, Legal Service Plans
Daniels Kenneth F
12800 Industrial Park Blvd #D4
Minneapolis, MN 55441
(763) 559-4700
Attorneys
Kramer Thomas G
488 Terrace Dr
Granite Falls, MN 56241
(320) 564-4548
Attorneys, Legal Service Plans
Kvam Spencer H Atty
410 7th Ave
Granite Falls, MN 56241
(320) 564-4483
Attorneys, General Practice Attorneys
Searles Law Office
9800 Shelard Pkwy
Minneapolis, MN 55441
(763) 544-4440
Attorneys, General Practice Attorneys, Legal Service Plans
Haagenson Steven S
945 Highway 169 N
Minneapolis, MN 55441
(952) 449-4411
General Practice Attorneys
Hendrickson Law Office
9800 Shelard Pkwy # 30
Minneapolis, MN 55441
(763) 398-4194
General Practice Attorneys, Attorneys, Legal Service Plans
Hendrickson John
10405 6th Ave N
Minneapolis, MN 55441
(763) 398-4194
Attorneys
R and R Paralegal Low Cost Divorce Service
3015 E Medicine Lake Blvd
Minneapolis, MN 55441
(763) 545-4183
Paralegals
Kvam Spencer H
685 Prentice St
Granite Falls, MN 56241
(320) 564-3825
Attorneys, Legal Service Plans
Holmstrom & Kvam
685 Prentice St
Granite Falls, MN 56241
(320) 564-3825
Civil Litigation & Trial Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,
Gartner Law Office LTD Attys
120 W Center St
Lake City, MN 55041
(651) 345-3308
General Practice Attorneys, Attorneys, Legal Service Plans
Schreiber & Jarstad
104 S Washington St
Lake City, MN 55041
(651) 345-3304
General Practice Attorneys, Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US