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!
 
 

A Primer on Estate & Inheritance Taxes in Zip Code 93760

A Primer on Estate & Inheritance Taxes in Zip Code 93760


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 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
 
Personalize & Print a Free CA Power of Attorney Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Related Legal Services near Zip Code 93760
Page Salisbury & Dudley
605 Center St
Santa Cruz, CA 95060
(831) 429-9966
Attorneys, General Practice Attorneys, Legal Service Plans
Musselman Robin
1101 Dove St
Newport Beach, CA 92660
(949) 223-9874
Attorneys Referral & Information Service, Legal Service Plans, Attorneys
Schwarzstein Richard
1151 Dove St # 130
Newport Beach, CA 92660
(714) 902-9874
Attorneys,  International Law Attorneys,  Business Law Attorneys,  Corporation & Partnership Law Att
Santa Barbara Process Servers
PO Box 61251
Santa Barbara, CA 93160
(888) 400-9868
Attorneys Support & Service Bureaus, Process Servers, Private Investigators & Detectives
Morgan Timothy J
121 Jewell St
Santa Cruz, CA 95060
(831) 429-9841
Attorneys, Real Estate Attorneys, Estate Planning, Probate, & Living Trusts, Civil Litigation & Tria
Towse Robin
625 Water St
Santa Cruz, CA 95060
(831) 426-9792
Attorneys,  Divorce Assistance,  Family Law Attorneys,  Estate Planning Attorneys,  Wills, Trusts &
Hal Wolowski & Assoc
1500 Quail St
Newport Beach, CA 92660
(949) 679-9787
Attorneys,  Business Law Attorneys,  Civil Litigation & Trial Law Attorneys,  Corporation & Partners
Hans P Fleischner Law Offices
74075 El Paseo # A11
Palm Desert, CA 92260
(760) 779-9777
Legal Service Plans, Real Estate Attorneys, Attorneys, General Practice Attorneys
Grossman David M
72960 Fred Waring Dr # 16
Palm Desert, CA 92260
(760) 837-9766
Attorneys, Probate Law Attorneys, Wills, Trusts & Estate Planning Attorneys, General Practice Attorn
Damon, Richard E - Richard E Damon Pc
125 Water St Ste D
Santa Cruz, CA 95060
(831) 429-9752
Attorneys,  Accident & Property Damage Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Pers
Sally Anne Cox
4302 Ford Rd
Newport Beach, CA 92660
(949) 260-9745
General Practice Attorneys, Attorneys, Legal Service Plans
Mediation Center
550 Water St Ste J3
Santa Cruz, CA 95060
(831) 429-9721
Arbitration Services, Attorneys, Family Law Attorneys, Divorce Attorneys, Counseling Services, Legal
California Attorneys Group
4700 Teller Ave
Newport Beach, CA 92660
(714) 847-9700
General Practice Attorneys, Attorneys, Legal Service Plans
Bankruptcy Center of Santa Cruz
104 Walnut Ave
Santa Cruz, CA 95060
(831) 466-9680
Bankruptcy Services,  Attorneys,  Bankruptcy Law Attorneys,  Debt Adjusters,  Financial Services,  C
The Lobel Firm, LLP
840 Newport Center Dr Suite 750
Newport Beach, CA 92660
(949) 791-9642
Attorneys,  Corporation & Partnership Law Attorneys,  Legal Service Plans,  Bankruptcy Law Attorneys
Taylor Morgan C
303 Potrero St # 43-109
Santa Cruz, CA 95060
(831) 471-9637
Attorneys, Labor & Employment Law Attorneys, Product Liability Law Attorneys, Social Security & Disa
O'Melveny & Myers LLP
610 Newport Center Dr
Newport Beach, CA 92660
(949) 760-9600
Attorneys, Labor & Employment Law Attorneys, Tax Attorneys, Business Law Attorneys, Legal Service Pl
Weiner Christine C
4675 Macarthur Ct # 1200
Newport Beach, CA 92660
(949) 852-9600
General Practice Attorneys, Attorneys, Legal Service Plans
F W Paralegal
1300 Dove St
Newport Beach, CA 92660
(949) 253-9598
Paralegals
Stevens Pascha R
915 Cedar St
Santa Cruz, CA 95060
(831) 460-9588
Attorneys, Legal Service Plans
Bankruptcy Attorney Near Thousand Oaks BATO
556 Marin St
Thousand Oaks, CA 91360
(805) 283-9534
Attorneys,  Foreclosure Services,  Attorneys Referral & Information Service,  Bankruptcy Services,  
Bruce Fagel Law Corp
74930 Country Club Dr
Palm Desert, CA 92260
(760) 320-9446
Personal Injury Law Attorneys, Insurance Attorneys, Attorneys
Rodriguez Arturo
1362 Pacific Ave
Santa Cruz, CA 95060
(831) 471-9444
Attorneys,  Child Custody Attorneys,  Family Law Attorneys,  Mediation Services,  Divorce Attorneys
The Seegmiller Law Firm
4695 MacArthur Ct
Newport Beach, CA 92660
(855) 275-9378
Attorneys,  Elder Law Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law Attorne
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US