Easy Questions  
Free Legal Documents

A Primer on Estate & Inheritance Taxes in Alledonia, OH

A Primer on Estate & Inheritance Taxes in Alledonia, OH


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 OH Last Will Download 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 OH Power of Attorney Download this Document
Page 1
Page 2
Page 3
Page 4
Page 5
Related Legal Services near Alledonia, OH
Alfred D. McCallin, Esq.
116 Cleveland Ave NW # 500
Canton, OH 44702
(330) 453-9999
Probate Law Attorneys, Real Estate Attorneys, Collection Law Attorneys, Estate Planning Attorneys
Pundzak Lynn D
830 Main St # 999
Cincinnati, OH 45202
(513) 564-9999
Corporation & Partnership Law Attorneys, Attorneys, Labor & Employment Law Attorneys
Pundzak Lynn D
830 Main St, Suite 999
Cincinnati, OH 45202
(513) 564-9999
Civil Litigation & Trial Law Attorneys, Discrimination & Civil Rights Law Attorneys, Labor & Employm
Ambrose James T
130 W 2nd St # 999
Dayton, OH 45402
(937) 229-9999
Attorneys,  Attorneys Referral & Information Service,  General Practice Attorneys,  Legal Service Pl
Morello and Bond LTD
116 Cleveland Ave NW
Canton, OH 44702
(330) 454-9960
Legal Service Plans,  Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  Crimina
Finkelmeier Law Firm
36 E 7th St # 1660
Cincinnati, OH 45202
(513) 621-9921
General Practice Attorneys, Attorneys, Legal Service Plans
Steiden Eric A
830 Main St # 401
Cincinnati, OH 45202
(513) 684-9900
General Practice Attorneys, Attorneys, Legal Service Plans
Osborne Wesley W
2511 Marion Mount Gilead Rd
Marion, OH 43302
(740) 389-9894
Attorneys,  Wills, Trusts & Estate Planning Attorneys,  General Practice Attorneys,  Estate Plannin
Proctor-Donald Beverly
401 Tuscarawas St W
Canton, OH 44702
(330) 580-9880
Attorneys,  Personal Injury Law Attorneys,  Family Law Attorneys,  Divorce Attorneys
L. Patrick Mulligan & Associates L.P.A. Co.
225 West Court Street
Cincinnati, OH 45202
(513) 421-9790
Mon-Fri 9am-5pm, Sat Closed, Sun Closed
L. Patrick Mulligan
28 N Wilkinson St
Dayton, OH 45402
(937) 228-9790
Divorce Attorneys, Attorneys, Criminal Law Attorneys, Divorce Assistance, Family Law Attorneys, Lega
Andreoff Alex & Associates
1 S Limestone St
Springfield, OH 45502
(937) 323-9783
Social Security & Disability Law Attorneys,  Attorneys,  Accident & Property Damage Attorneys,  Empl
Andreoff Alex & Associates
1 S Limestone St Ste 310
Springfield, OH 45502
(937) 323-9783
Attorneys
Davis Jr Myron Y
700 Walnut St # 209
Cincinnati, OH 45202
(513) 241-9773
Attorneys, Legal Service Plans
Schmenk Gerald E
20 N Limestone St
Springfield, OH 45502
(937) 323-9739
General Practice Attorneys, Title Companies, Attorneys
DeGirolamo, Anthony J
116 Cleveland Ave NW
Canton, OH 44702
(330) 588-9700
Bankruptcy Law Attorneys,  Attorneys,  Business Law Attorneys,  Business Bankruptcy Law Attorneys,  
Stone M Blake
25 S Mulberry St
Mansfield, OH 44902
(877) 595-9681
Social Security & Disability Law Attorneys,  Attorneys,  Accident & Property Damage Attorneys,  Pers
Helmick Bertha G
810 Sycamore St # 4
Cincinnati, OH 45202
(513) 651-9666
Family Law Attorneys, Divorce Assistance, Attorneys
Denicola & Co Lpa
36 E 7th St # 2020
Cincinnati, OH 45202
(513) 621-9660
Personal Injury Law Attorneys, Litigation & Tort Attorneys, Attorneys
Foltz Law Offices LLC
122 Central Plz N
Canton, OH 44702
(330) 456-9656
Divorce Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Accident & Property
Gupta Shawn
1324 State Route 125
Amelia, OH 45102
(513) 752-9455
General Practice Attorneys, Attorneys
Young Reverman & Mazzei CO LPA
1014 Vine St #2400
Cincinnati, OH 45202
(513) 770-9444
Adoption Law Attorneys,  DUI & DWI Attorneys,  Social Security & Disability Law Attorneys,  Attorney
Marinakis & Marinakis
605 Sycamore St
Cincinnati, OH 45202
(513) 684-9393
General Practice Attorneys, Attorneys, Legal Service Plans
Hammond John R
4 W Main St
Springfield, OH 45502
(937) 327-9370
DUI & DWI Attorneys,  Attorneys,  Personal Injury Law Attorneys,  Criminal Law Attorneys,  Divorce A
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US