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 97438

A Primer on Estate & Inheritance Taxes in Zip Code 97438


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 OR 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 OR Power of Attorney Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Related Legal Services near Zip Code 97438
Mikkelsen D Craig
107 N Molalla Ave
Molalla, OR 97038
(503) 829-9289
Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Corporation & Partnership Law Attorneys,  B
Dooney Michael J
1111 S Holladay Dr
Seaside, OR 97138
(503) 738-8461
Attorneys, Legal Service Plans
Ditton Thomas J
210 E Main St
Hermiston, OR 97838
(541) 567-8365
Attorneys,  Bankruptcy Services,  Legal Service Plans,  Bankruptcy Law Attorneys
Creasing Thomas J
410 E Hurlburt Ave
Hermiston, OR 97838
(541) 567-8301
Attorneys, General Practice Attorneys, Legal Service Plans
Spicerkuhn Phillip
410 E Hurlburt Ave
Hermiston, OR 97838
(541) 567-8301
General Practice Attorneys, Attorneys, Legal Service Plans
Campbell & Popkin, LLC
1580 N Roosevelt Dr
Seaside, OR 97138
(503) 739-8006
Probate Law Attorneys,  Attorneys,  Labor & Employment Law Attorneys,  Elder Law Attorneys,  Wills,
Smith Law Group
913 N 1st St
Hermiston, OR 97838
(541) 567-7200
Attorneys, Legal Service Plans
Smith Dale L
913 N 1st St
Hermiston, OR 97838
(541) 567-7200
Attorneys, Legal Service Plans
Lillegard Chris L
236 SW Mill St
Dallas, OR 97338
(503) 623-6676
Attorneys
Berg Doug
236 SW Mill St
Dallas, OR 97338
(503) 623-6676
Attorneys
Vidrio Julio D
236 SW Mill St
Dallas, OR 97338
(503) 623-6676
Attorneys
Moberg Robert C
842 Broadway St
Seaside, OR 97138
(503) 738-6380
Attorneys,  Estate Planning, Probate, & Living Trusts,  Wills, Trusts & Estate Planning Attorneys
Mannenbach Stephen F
133 SW Academy St
Dallas, OR 97338
(503) 623-6052
Attorneys, General Practice Attorneys
Bendixsen Reynolds & Wallace
245 E Main St # E
Hermiston, OR 97838
(541) 567-5564
Attorneys, Legal Service Plans
Brewer Rustin A
245 E Main St # E
Hermiston, OR 97838
(541) 567-5501
Attorneys
Doherty Ben Law
570 S Townsend Rd
Hermiston, OR 97838
(541) 567-4488
Attorneys
Flukinger Ashley
135 N Roosevelt Dr
Seaside, OR 97138
(503) 738-4272
Administrative & Governmental Law Attorneys, Attorneys, Immigration Law Attorneys
Von Blumenstein Law
154 SW Oak St
Dallas, OR 97338
(503) 433-3639
Attorneys Referral & Information Service, Attorneys, Arbitration Services
Luisi Gary Atty
230 SE 4th St
Hermiston, OR 97838
(541) 567-3360
Attorneys, Legal Service Plans
Toni Skinner
222 E Main St
Hermiston, OR 97838
(541) 567-3030
Attorneys, Legal Service Plans
Ballard John L
125 SW 3rd St
Hermiston, OR 97838
(541) 564-2574
Attorneys, Legal Service Plans
Shetterly Irick & Ozias
189 SW Academy St
Dallas, OR 97338
(877) 976-2309
Attorneys, Probate Law Attorneys, Family Law Attorneys
Stephens Daniel
930 W Juniper Ave
Hermiston, OR 97838
(541) 567-1545
Attorneys
Hinton D. Alan
115 W Hermiston Ave Suite 100
Hermiston, OR 97838
(855) 335-1305
Attorneys, Social Security & Disability Law Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US