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 89502

A Primer on Estate & Inheritance Taxes in Zip Code 89502


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 NV 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 NV Power of Attorney Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Related Legal Services near Zip Code 89502
Paralegals Plus
4355 Snowshoe Ln
Reno, NV 89502
(775) 823-9993
Attorneys, Attorneys Support & Service Bureaus, Legal Service Plans
Leitner Eric D
516 Ryland St
Reno, NV 89502
(775) 333-9987
General Practice Attorneys, Attorneys
Hanifan Jack R
1575 Delucchi Ln
Reno, NV 89502
(775) 828-9970
General Practice Attorneys, Attorneys
Emerson Phillip
1755 E Plumb Ln # 256C
Reno, NV 89502
(775) 333-9500
Attorneys, Legal Service Plans
DNC Works
4950 S Virginia St
Reno, NV 89502
(775) 828-9188
Attorneys, Legal Service Plans
Aholelei Law Firm, Ltd.: U. Mehi Aholelei-Aonga, Esq.
1610 Meadow Wood Lane, Ste 202
Reno, NV 89502
(775) 636-9130
Attorneys, General Practice Attorneys
John C Smith
333 Holcomb Ave
Reno, NV 89502
(775) 324-9100
Civil Litigation & Trial Law Attorneys, Criminal Law Attorneys, Federal Law Attorneys, Juvenile Law
Jill K Whitbeck
1005 Terminal Way # 128
Reno, NV 89502
(775) 337-8863
Divorce Assistance,  Child Custody Attorneys,  Divorce Attorneys,  Family Law Attorneys,  Personal I
Long John D
1575 Delucchi Ln
Reno, NV 89502
(775) 827-8767
Patent, Trademark & Copyright Law Attorneys,  Attorneys,  Patent Agents,  Legal Service Plans
Berning Kathrine I
195 Casazza Dr
Reno, NV 89502
(775) 329-8646
Attorneys
Daniel A Bonneville
955 S Virginia St Ste 101
Reno, NV 89502
(775) 686-8608
Attorneys
Maiss Law Group Ltd
1575 Delucchi Ln # 201
Reno, NV 89502
(775) 657-8160
Family Law Attorneys, Attorneys
Adkins David E
1325 Airmotive Way # 390
Reno, NV 89502
(775) 786-8050
Attorneys
Stephen G Young
620 E Plumb Ln Ste 210
Reno, NV 89502
(775) 329-7979
Bankruptcy Services,  Attorneys,  Business Bankruptcy Law Attorneys,  General Practice Attorneys,  B
Young Clifton
650 S Rock Blvd
Reno, NV 89502
(775) 677-7777
Attorneys, Legal Service Plans
Novi & Wilkin
1325 Airmotive Way
Reno, NV 89502
(775) 786-7721
Attorneys, General Practice Attorneys, Legal Service Plans
Disability Representatives
1005 Terminal Way Ste. 182
Reno, NV 89502
(775) 329-7576
Attorneys, General Practice Attorneys
Butko Karla K
1030 Holcomb Ave
Reno, NV 89502
(775) 786-7118
Attorneys
Gary Nelson Ltd
4600 Kietzke Ln
Reno, NV 89502
(775) 825-7000
Attorneys
Henderson & Morgan
4600 Kietzke Ln
Reno, NV 89502
(775) 825-7000
Attorneys, Tax Attorneys, Banking & Mortgage Law Attorneys
Presto Reporting Services
4600 Kietzke Ln
Reno, NV 89502
(775) 825-7000
Attorneys, Court & Convention Reporters
Disability Action Advocates
2700 Mill Street, Suite 1000
Reno, NV 89502
(775) 359-6990
Attorneys,  Social Security Services,  Social Service Organizations,  Legal Service Plans,  Social S
American Civil Liberties Union
1325 Airmotive Way
Reno, NV 89502
(775) 786-6757
General Practice Attorneys, Attorneys
Robert Kilby ESQ
1755 E Plumb Ln #103
Reno, NV 89502
(775) 337-6670
Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US