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 Gunnison, MS

Estate Taxes, Gift Taxes and Inheritance Taxes in Gunnison, MS


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 MS 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 Gunnison, MS
Tom Rich
153 E Center St
Canton, MS 39046
(601) 988-9111
Accident & Property Damage Attorneys, Criminal Law Attorneys, DUI & DWI Attorneys
Stater III Stanley F
3352 N Liberty St
Canton, MS 39046
(601) 948-8888
Attorneys
Miller, Jimmy L
330 Pecan St
Marks, MS 38646
(662) 326-7654
General Practice Attorneys, Attorneys, Legal Service Plans
Savant Tommy R
100 E Center St
Canton, MS 39046
(601) 859-7375
Attorneys, General Practice Attorneys
Wamsley Alex
471 County Road 300
Glen, MS 38846
(662) 287-6510
Attorneys
Nichols George
650 W Peace St
Canton, MS 39046
(601) 859-6500
Attorneys
Smith, Ferr
650 E Peace St
Canton, MS 39046
(601) 859-6500
Personal Injury Law Attorneys, Automobile Accident Attorneys, Attorneys
Spivey, Daniel S
141 E Center St
Canton, MS 39046
(601) 859-5251
Attorneys
Spivey Jr Lloyd G
141 E Center St
Canton, MS 39046
(601) 859-5251
Attorneys, General Practice Attorneys, Legal Service Plans
Wohner Collins
229 E Center St
Canton, MS 39046
(601) 859-4373
Attorneys, Legal Service Plans
Ritchey Jacob M
133 S Union St
Canton, MS 39046
(601) 859-4141
General Practice Attorneys, Attorneys, Legal Service Plans
Montgomery McGraw PLLC
151 W Peace St
Canton, MS 39046
(601) 859-3616
Attorneys
Montgomery C R
3350 N Liberty St # A
Canton, MS 39046
(601) 859-3616
Attorneys
Long, Robert W
129 E Peace St
Canton, MS 39046
(601) 859-2573
Attorneys
Herring Long & Crews PC
129 E Peace St
Canton, MS 39046
(601) 859-2573
Attorneys, Wills, Trusts & Estate Planning Attorneys, Family Law Attorneys
Crews, III James M. III
129 E Peace St
Canton, MS 39046
(601) 859-2573
Attorneys
Evans Wesley T
712 E Peace St
Canton, MS 39046
(601) 855-2255
Attorneys,  Bankruptcy Law Attorneys,  Business Bankruptcy Law Attorneys,  General Practice Attorney
Blackmon & Blackmon
907 W Peace St
Canton, MS 39046
(601) 859-1567
General Practice Attorneys, Attorneys
Schwartz & Associates
172 E Center St
Canton, MS 39046
(601) 859-1300
Attorneys, Legal Service Plans
Goza Law Firm
114 W Center St
Canton, MS 39046
(601) 855-0800
General Practice Attorneys, Attorneys
Ward Michael
120 E Center St
Canton, MS 39046
(601) 859-0004
Attorneys, General Practice Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US