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 Greenville, ME

Estate Taxes, Gift Taxes and Inheritance Taxes in Greenville, ME


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 ME 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 Greenville, ME
Kevin J Murphy
11 Pheasant Dr
Rockland, ME 04841
(207) 594-9983
Attorneys
Emery Carol
423 Main St
Rockland, ME 04841
(207) 594-8911
Attorneys, Legal Service Plans
Morse Eric B
10 Masonic St
Rockland, ME 04841
(207) 594-8400
Attorneys
Mellor, Patrick J - Strout & Payson Pa
10 Masonic St
Rockland, ME 04841
(207) 594-8400
Legal Service Plans, Attorneys, Business Law Attorneys, General Practice Attorneys
Kenniston Lauren H
10 Masonic St
Rockland, ME 04841
(207) 594-8400
Attorneys
Hall Lauren C
10 Masonic St
Rockland, ME 04841
(207) 594-8400
Attorneys
Strout & Payson PA
10 Masonic St
Rockland, ME 04841
(207) 594-8400
Legal Service Plans,  Attorneys,  Business Law Attorneys,  General Practice Attorneys
Levine Robert J
10 Masonic St
Rockland, ME 04841
(207) 594-8400
Attorneys
Watkinson Randal E Atty
10 Masonic St
Rockland, ME 04841
(207) 594-8400
Attorneys
Smith Law Offices PA
59 Camden St
Rockland, ME 04841
(888) 828-8225
Attorneys, General Practice Attorneys, Legal Service Plans
Pease Willard D
306 Broadway
Rockland, ME 04841
(207) 596-7306
Attorneys, General Practice Attorneys, Legal Service Plans
Smith Eric
PO Box 4600
Lewiston, ME 04241
(207) 782-7013
Attorneys
Washington Park Estates Management Offices
453 Main St
Rockland, ME 04841
(603) 647-6604
Attorneys
Heath Law Firm
91 Camden St # 305
Rockland, ME 04841
(207) 596-6506
Attorneys, General Practice Attorneys, Legal Service Plans
Mellor Patrick J-Attorney
15 Tillson Ave
Rockland, ME 04841
(207) 594-6138
Attorneys
Perkins Olson PA
15 Tillson Ave
Rockland, ME 04841
(207) 594-6138
Attorneys, Legal Service Plans
Pagnano William F
431 Main St
Rockland, ME 04841
(207) 596-5758
Attorneys, General Practice Attorneys
Volpe Anita M
429 Main St
Rockland, ME 04841
(207) 594-5246
Attorneys, Legal Service Plans
Newcomb & Reynolds
166 Main St
Rockland, ME 04841
(207) 594-5178
Attorneys, General Practice Attorneys, Legal Service Plans
Cloutier Chad
58 Park St
Rockland, ME 04841
(207) 594-5001
Attorneys
Rockland Cemetery Assn
10 School St
Rockland, ME 04841
(207) 594-4421
Attorneys
Crandall Wayne R
10 School St
Rockland, ME 04841
(207) 594-4421
Attorneys, Legal Service Plans, Real Estate Attorneys, Family Law Attorneys, Estate Planning Attorne
Crandall Hanscom & Collins PA
10 School St
Rockland, ME 04841
(207) 594-4421
Estate Planning Attorneys,  Attorneys,  Family Law Attorneys,  Real Estate Attorneys,  Legal Service
Collins Edward M Atty
10 School St
Rockland, ME 04841
(207) 594-4421
Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US