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 Avis, PA

Estate Taxes, Gift Taxes and Inheritance Taxes in Avis, PA


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 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
Related Legal Services near Avis, PA
Smart John W
1500 Ardmore Blvd # 506
Pittsburgh, PA 15221
(412) 243-9700
Attorneys
Voelcker Laurinda J
105 E Market St
Danville, PA 17821
(570) 275-9100
General Practice Attorneys, Attorneys
Evashavik G N
2144 Ardmore Blvd
Pittsburgh, PA 15221
(412) 351-7767
Attorneys, Legal Service Plans
Smith Paul E
1015 Main St
Forest City, PA 18421
(570) 785-7070
Attorneys,  Accident & Property Damage Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Real
Northwestern Legal Services
1031 Roemer Blvd
Farrell, PA 16121
(724) 346-6112
Attorneys, General Practice Attorneys
Silberblatt Jay N
217 Hawthorne Ct
Pittsburgh, PA 15221
(412) 241-6020
Attorneys, Legal Service Plans
Bianco David
707 Main St
Forest City, PA 18421
(570) 785-5788
General Practice Attorneys, Attorneys, Legal Service Plans
Kessler Mattis LLP
2 Mill St
Danville, PA 17821
(570) 284-4977
General Practice Attorneys, Family Law Attorneys, Criminal Law Attorneys, Attorneys
Total Attorneys - DUI
PO Box 274036
Branchton, PA 16021
(724) 201-4119
Attorneys, Legal Service Plans
O'Day Law Assoc Attorneys
2004 N Broad St
Philadelphia, PA 19121
(717) 393-4001
Attorneys
Strouse Keith J
816 Centre St
Ashland, PA 17921
(570) 875-3740
Elder Law Attorneys, Attorneys, Real Estate Attorneys, General Practice Attorneys
Carpenito Stephen T
615 Centre St
Ashland, PA 17921
(570) 875-3500
Attorneys, Legal Service Plans
Marks McLaughlin & Dennehy
12 W Market St
Danville, PA 17821
(570) 275-3411
General Practice Attorneys, Attorneys, Legal Service Plans
Marks Jr Robert L
12 W Market St
Danville, PA 17821
(570) 275-3411
Attorneys
Simpson Craig
1500 Ardmore Blvd Suite 207
Pittsburgh, PA 15221
(412) 731-3100
Administrative & Governmental Law Attorneys, Attorneys, Legal Service Plans
Karsten Bonnie
309 Overdale Rd
Pittsburgh, PA 15221
(412) 371-2868
Attorneys, Legal Service Plans
Woomer & Hall LLP
906 Indiana Ave
Farrell, PA 16121
(724) 981-2593
Corporation & Partnership Law Attorneys, Attorneys, Legal Service Plans, Employee Benefits & Worker
Handelsman George B
2143 Ardmore Blvd
Pittsburgh, PA 15221
(412) 351-2000
General Practice Attorneys, Attorneys, Legal Service Plans
Bowers, Timothy A - Tim Bowers Law Office
319 Mill St
Danville, PA 17821
(570) 275-1110
Attorneys,  General Practice Attorneys,  Legal Service Plans,  Family Law Attorneys,  Divorce Attorn
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US