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 17901

A Primer on Estate & Inheritance Taxes in Zip Code 17901


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 PA 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 PA Power of Attorney Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Related Legal Services near Zip Code 17901
Bressi Jr Charles A
217 Mahantongo St
Pottsville, PA 17901
(570) 691-8781
Attorneys
The Lipkin Law Firm
1940 W Norwegian St
Pottsville, PA 17901
(570) 581-8656
General Practice Attorneys, Attorneys
Marconis Carolyn M
2490 W End Ave
Pottsville, PA 17901
(570) 622-8404
Attorneys,  Estate Planning, Probate, & Living Trusts,  Social Security & Disability Law Attorneys
Quinn Nicholas A
601 W Market St
Pottsville, PA 17901
(570) 622-8370
General Practice Attorneys, Attorneys
Krasno Krasno & Onwudinjo
400 N 2nd St
Pottsville, PA 17901
(570) 622-8297
Social Security & Disability Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorne
Henry, Susan M - Krasno Krasno & Onwudinjo Law
400 N 2nd St
Pottsville, PA 17901
(570) 622-8297
Social Security & Disability Law Attorneys, Attorneys, Criminal Law Attorneys, Family Law Attorneys,
Barket Mark A
510 W Market St
Pottsville, PA 17901
(570) 622-8190
Attorneys,  Bankruptcy Services,  Legal Service Plans,  Bankruptcy Law Attorneys
Fiorillo Michael
217 Mahantongo St
Pottsville, PA 17901
(570) 622-7725
General Practice Attorneys, Attorneys
Sterns Gretchen
200 Mahantongo St
Pottsville, PA 17901
(570) 624-7040
Attorneys, Title Companies, Wills, Trusts & Estate Planning Attorneys, Real Estate Attorneys, Genera
Corse Jr Chester C
10 Westwood Rd
Pottsville, PA 17901
(570) 622-5933
Attorneys, Legal Service Plans, Family Law Attorneys, Probate Law Attorneys, Elder Law Attorneys, Ac
Guzick-Schafer Lori A
10 Westwood Rd
Pottsville, PA 17901
(570) 622-5933
Attorneys,  Legal Service Plans,  Family Law Attorneys,  Probate Law Attorneys,  Elder Law Attorneys
Mika Eric M
10 Westwood Rd
Pottsville, PA 17901
(570) 622-5933
Attorneys, Probate Law Attorneys, Wills, Trusts & Estate Planning Attorneys, General Practice Attorn
Pfeiffer Brown Dinicola & Frantz
1800 W End Ave
Pottsville, PA 17901
(570) 622-5693
Social Security & Disability Law Attorneys,  Attorneys,  Accident & Property Damage Attorneys,  Corp
Brown Harry J
1800 W End Ave
Pottsville, PA 17901
(570) 622-5693
General Practice Attorneys, Attorneys
Conway Maryann
1825 W Market St # 2
Pottsville, PA 17901
(570) 628-4852
Attorneys, Family Law Attorneys, Estate Planning, Probate, & Living Trusts, Wills, Trusts & Estate P
Pellish & Pellish
809 W Market St
Pottsville, PA 17901
(570) 391-4168
Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Personal Injury Law
Pellish Thomas J
306 Mahantongo St
Pottsville, PA 17901
(570) 628-3325
General Practice Attorneys, Attorneys
Brennan Edward M
306 Mahantongo St
Pottsville, PA 17901
(570) 628-2461
Attorneys, Legal Service Plans
Day, Arlen R - Riley Fanelli Evans & Patel Pc
1 Mahantongo St
Pottsville, PA 17901
(570) 622-2455
Attorneys,  Legal Service Plans,  Consumer Law Attorneys,  Accident & Property Damage Attorneys,  Co
Day Arlen R
1 Mahantongo St
Pottsville, PA 17901
(570) 622-2455
Attorneys, Legal Service Plans, Consumer Law Attorneys, Accident & Property Damage Attorneys, County
Conway Maryann & Associates PC
1825 W Market St
Pottsville, PA 17901
(855) 244-2373
Wills, Trusts & Estate Planning Attorneys,  General Practice Attorneys,  Estate Planning Attorneys,
Hank J. Clarke
102 One Norwegian Plaza
Pottsville, PA 17901
(510) 622-2288
Criminal Law Attorneys, Attorneys, Family Law Attorneys
Urban Anthony J
474 N Centre St
Pottsville, PA 17901
(570) 644-2264
Civil Litigation & Trial Law Attorneys, Attorneys, Criminal Law Attorneys, Labor & Employment Law At
Anthony Urban Law Offices Pc
474 N Centre St
Pottsville, PA 17901
(570) 644-2264
Civil Litigation & Trial Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Social Security & Disa
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US