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 43155

A Primer on Estate & Inheritance Taxes in Zip Code 43155


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 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 OH Power of Attorney Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Related Legal Services near Zip Code 43155
Carter Gregory E
21 W Church St # 208
Newark, OH 43055
(740) 345-9722
Attorneys, Criminal Law Attorneys, Legal Service Plans
Cooper Timothy M
33 W Main St # 100
Newark, OH 43055
(740) 345-9611
General Practice Attorneys, Attorneys, Legal Service Plans
Altmaier Martin D
33 W Main St # 100
Newark, OH 43055
(740) 345-9611
Probate Law Attorneys, Attorneys, Bankruptcy Law Attorneys
Glenn A White Atty Ofc
33 W Main St
Newark, OH 43055
(740) 345-9611
General Practice Attorneys, Attorneys, Legal Service Plans
Morris Robert
8 Arcade Pl # 202
Newark, OH 43055
(740) 345-8900
Attorneys
Aebi John W
843 N 21st St # 109
Newark, OH 43055
(740) 366-8875
Attorneys, Social Security & Disability Law Attorneys, General Practice Attorneys, Legal Service Pla
Ripko Cindy
35 S Park Pl # 201
Newark, OH 43055
(740) 349-8714
Family Law Attorneys, Attorneys
Handelman Law Office
29 S Park Pl
Newark, OH 43055
(740) 349-8581
Social Security & Disability Law Attorneys,  Attorneys,  Wills, Trusts & Estate Planning Attorneys,
Matt Dawson Law
35 S Park Pl # 150
Newark, OH 43055
(740) 345-8533
Attorneys, Criminal Law Attorneys, Family Law Attorneys, Juvenile Law Attorneys, General Practice At
Schaller Campbell & Untied Attorneys
32 N Park Pl
Newark, OH 43055
(740) 349-8505
Attorneys
Untied Wesley K
32 N Park Pl
Newark, OH 43055
(740) 349-8505
Attorneys, Family Law Attorneys, Probate Law Attorneys, Wills, Trusts & Estate Planning Attorneys, C
Wigginton David Q
32 N Park Pl
Newark, OH 43055
(740) 349-8505
General Practice Attorneys, Attorneys
Zellar Crystal I
51 N 3rd St # 502
Newark, OH 43055
(740) 452-8439
Attorneys,  Accident & Property Damage Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Corp
Gregory S Young Co LPA
4030 Mount Carmel Tobasco Rd
Cincinnati, OH 45255
(513) 372-8396
Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  Legal Service Pla
Ritzler Robert H
3 N 3rd St # 201
Newark, OH 43055
(740) 349-8384
Family Law Attorneys, Attorneys, Criminal Law Attorneys
The Meranda Law Firm
3 N 3rd St
Newark, OH 43055
(740) 349-8384
Personal Injury Law Attorneys, Attorneys
Hand James R
9 S 3rd St
Newark, OH 43055
(740) 349-8371
General Practice Attorneys, Attorneys
Tuhy Elena V
23 S Park Pl
Newark, OH 43055
(740) 334-8347
Attorneys
Olivia K. Smith
7801 Beechmont Avenue, Suite 9
Cincinnati, OH 45255
(513) 474-8080
Child Custody Attorneys, Divorce Attorneys, Family Law Attorneys
Gardner Mark D
23 S Park Pl # 208
Newark, OH 43055
(740) 345-7955
General Practice Attorneys, Attorneys, Legal Service Plans
Morgan Ann M
8070 Beechmont Ave
Cincinnati, OH 45255
(513) 474-7700
Attorneys
Harmon Paul D
215 Deo Dr Ste 130
Newark, OH 43055
(740) 366-7446
Attorneys
Christiansen Co LPA
172 Hudson Ave
Newark, OH 43055
(740) 349-7414
Attorneys
Stokes David B Atty
21 W Church St Ste 206
Newark, OH 43055
(740) 349-7266
General Practice Attorneys, Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US