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 Avalon, CA

Estate Taxes, Gift Taxes and Inheritance Taxes in Avalon, CA


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 CA 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 Avalon, CA
Walters And Moshrefi PC
5424 N Palm Ave
Fresno, CA 93704
(559) 439-9999
Criminal Law Attorneys,  Divorce Attorneys,  Estate Planning, Probate, & Living Trusts,  Personal
Jonathan M. Rutledge
225 Bush St Suite 1600
San Francisco, CA 94104
(888) 441-9973
Attorneys, Criminal Law Attorneys, DUI & DWI Attorneys
Nick Davaei
4000 Barranca Pkwy
Irvine, CA 92604
(714) 417-9955
Immigration Law Attorneys
Sarmiento Juliette Topacio
2039 Shattuck Ave # 204
Berkeley, CA 94704
(510) 548-9944
Attorneys, General Practice Attorneys
Steinhauer Eric
1919 Addison St
Berkeley, CA 94704
(510) 843-9944
General Practice Attorneys, Attorneys
Thai Duy
351 California St # 550
San Francisco, CA 94104
(415) 296-9927
Attorneys, Legal Service Plans
Gray Law Firm
235 Montgomery St # 930
San Francisco, CA 94104
(415) 262-9926
Insurance Attorneys, Attorneys, Legal Service Plans
Herman D Papa
354 Pine St # 3
San Francisco, CA 94104
(415) 399-9922
Attorneys, Legal Service Plans
Moss Tucker Chiu Hebesha
5260 N Palm Ave
Fresno, CA 93704
(559) 472-9922
Corporation & Partnership Law Attorneys, Attorneys, Legal Service Plans
Jensen Chas Atty
1622 4th St
Santa Rosa, CA 95404
(707) 527-9911
General Practice Attorneys, Attorneys
Capron John R
400 Montgomery St
San Francisco, CA 94104
(415) 693-9901
Attorneys, General Practice Attorneys
Litigation-Tech
44 Montgomery St
San Francisco, CA 94104
(415) 291-9900
Attorneys Support & Service Bureaus, Attorneys, General Practice Attorneys
Overett Group
5150 Pacific Coast Highway
Long Beach, CA 90804
(562) 986-9864
Accident & Property Damage Attorneys, Personal Injury Law Attorneys, Attorneys
Mayra's Wedding Chapel
407 N Normandie Ave
Los Angeles, CA 90004
(323) 663-9814
Notaries Public,  Attorneys Referral & Information Service,  Wedding Chapels & Ceremonies,  Wedding
Aspelin John
220 Montgomery St # 1009
San Francisco, CA 94104
(415) 296-9812
General Practice Attorneys, Attorneys, Legal Service Plans
Tobriner Michael C Atty
115 Sansome St
San Francisco, CA 94104
(415) 981-9801
General Practice Attorneys, Attorneys
HAQ LAW FIRM
6600 Jurupa Ave
Riverside, CA 92504
(909) 234-9789
Family Law Attorneys, Divorce Attorneys, Civil Litigation & Trial Law Attorneys, Domestic Violence A
Rogers Richard
100 Bush St # 1980
San Francisco, CA 94104
(415) 981-9788
General Practice Attorneys, Attorneys
Dann Emery & Karen
1120 Carr Ave
Santa Rosa, CA 95404
(707) 527-9711
Family Law Attorneys
Divorce & Family Law
5412 N Palm Ave
Fresno, CA 93704
(559) 431-9710
Family Law Attorneys, Attorneys, Legal Service Plans
Bromberg Dennis
5740 N Palm Ave
Fresno, CA 93704
(559) 439-9700
Attorneys, Social Security & Disability Law Attorneys
Bromberg Dennis A Professional Law Corporation
5740 N Palm Ave
Fresno, CA 93704
(559) 439-9700
Attorneys, Social Security & Disability Law Attorneys
Friedman Bruce K
425 California St
San Francisco, CA 94104
(415) 395-9700
Attorneys, Estate Planning Attorneys, Legal Service Plans, General Practice Attorneys
Weinberger Mark
613 4th St Suite 201
Santa Rosa, CA 95404
(707) 546-9700
Attorneys, Employee Benefits & Worker Compensation Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US