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 29407

A Primer on Estate & Inheritance Taxes in Zip Code 29407


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 SC 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 SC Power of Attorney Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Related Legal Services near Zip Code 29407
Ferri, Kathleen M
1339 Winchester Dr
Charleston, SC 29407
(843) 557-9775
Probate Law Attorneys,  Attorneys,  Family Law Attorneys,  Mediation Services,  Wills, Trusts & Est
Schwartz Paul D
708 Saint Andrews Blvd
Charleston, SC 29407
(843) 480-9566
Personal Injury Law Attorneys,  Attorneys,  Family Law Attorneys,  Criminal Law Attorneys,  Social S
Varner, Kyle T
1 Carriage Ln
Charleston, SC 29407
(843) 766-9007
Attorneys
Sanders Law Firm LLC
1738 Three Oaks Ave
Charleston, SC 29407
(843) 573-8828
Automobile Accident Attorneys,  Construction Law Attorneys,  Criminal Law Attorneys,  Personal Injur
Nichols Law Firm
1224 Wappoo Rd
Charleston, SC 29407
(843) 414-8668
General Practice Attorneys, Attorneys
The Capretti Law Firm, LLC
29 Gamecock Avenue, Suite 100
Charleston, SC 29407
(843) 452-8496
General Practice Attorneys
Shelly Leeke Law Firm
1643B Savannah Hwy Ste 160
Charleston, SC 29407
(843) 297-8485
Attorneys Referral & Information Service, Attorneys
Gerardi Law Firm
1632 Ashley River Rd
Charleston, SC 29407
(843) 207-8200
Civil Litigation & Trial Law Attorneys,  Personal Injury Law Attorneys,  Attorneys,  General Practic
Maybank Law Firm
531 Savannah Hwy
Charleston, SC 29407
(843) 766-8101
D Dusty Rhoades
828A Saint Andrews Blvd
Charleston, SC 29407
(843) 556-8000
Attorneys, Corporation & Partnership Law Attorneys, Legal Service Plans, Employee Benefits & Worker
Job Injury Law Firm
828 Saint Andrews Blvd
Charleston, SC 29407
(843) 556-8000
Attorneys, Family Law Attorneys, Labor & Employment Law Attorneys, Divorce Attorneys, Business Law A
Schwartz, Lester S
708 Saint Andrews Blvd
Charleston, SC 29407
(843) 571-7919
Estate Planning Attorneys, Attorneys, Tax Attorneys, Wills, Trusts & Estate Planning Attorneys, Lega
Jesse Goode, LLC
571 Savannah Highway, Suite 4
Charleston, SC 29407
(843) 754-7811
Accident & Property Damage Attorneys,  Criminal Law Attorneys,  General Practice Attorneys,  Persona
Fowler Stephen L
3 Gamecock Ave
Charleston, SC 29407
(843) 769-7777
Attorneys, Family Law Attorneys, Divorce Attorneys, Legal Service Plans
Fogel Robert D
720 Saint Andrews Blvd
Charleston, SC 29407
(843) 722-7773
Attorneys, General Practice Attorneys
Legare Hare And Smith Atty
720 Saint Andrews Blvd
Charleston, SC 29407
(843) 722-7773
Attorneys, Family Law Attorneys
Schachte Stephen T
720 Saint Andrews Blvd
Charleston, SC 29407
(843) 722-7773
General Practice Attorneys, Attorneys
Hawkins, G. Edward III
800 Wappoo Rd
Charleston, SC 29407
(843) 225-7565
Family Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Divorce Attorneys,  Personal Injury Law
Tolly Law Firm
1634 Ashley River Rd
Charleston, SC 29407
(843) 266-7498
General Practice Attorneys, Attorneys
Condon Colleen
3 Gamecock Ave Ste 306
Charleston, SC 29407
(843) 225-7288
Family Law Attorneys, Attorneys, Divorce Attorneys, General Practice Attorneys, Legal Service Plans
Greene Thomas W
925 Wappoo Rd
Charleston, SC 29407
(843) 556-7273
Personal Injury Law Attorneys,  Attorneys,  Accident & Property Damage Attorneys,  Corporation & Par
Hoffman Jr David L
1 Carriage Ln # D
Charleston, SC 29407
(843) 769-7077
Attorneys, Corporation & Partnership Law Attorneys, General Practice Attorneys, Legal Service Plans,
Bostic Law Firm PA
873 turnpike street
Charleston, SC 29407
(877) 364-6943
Family Law Attorneys,  Personal Injury Law Attorneys,  Law Enforcement Agencies-Government,  Bankrup
Wood & Warder
1 Wesley Dr
Charleston, SC 29407
(843) 577-5732
Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US