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 29810

A Primer on Estate & Inheritance Taxes in Zip Code 29810


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 29810
Ferguson Lelia
1345 Garner Ln # 202
Columbia, SC 29210
(803) 561-9993
Attorneys, General Practice Attorneys, Legal Service Plans
Caroline Overcash
354 S Stonehedge Dr
Columbia, SC 29210
(803) 750-9979
Attorneys
Beasley Pamela Simmons Law Offices
810 Dutch Square Blvd
Columbia, SC 29210
(803) 798-9890
Social Security & Disability Law Attorneys,  Attorneys,  Bankruptcy Law Attorneys,  General Practice
Douglas S Delaney
9 Oak Forest Rd Ste 200
Bluffton, SC 29910
(843) 815-9777
General Practice Attorneys, Attorneys
Delaney Law Firm
9 Oak Forest Rd Ste 200
Bluffton, SC 29910
(843) 815-9777
General Practice Attorneys, Attorneys
Stegner Law Firm
3-B Lafayette Ct
Cmdn, SC 29010
(803) 432-9586
Attorneys, Social Security & Disability Law Attorneys
Boshaw Law Firm
6 Shults Rd Ste 1C
Bluffton, SC 29910
(843) 837-9050
General Practice Attorneys, Attorneys, Legal Service Plans
Levine, Wendy
1022 Saint Andrews Rd
Columbia, SC 29210
(803) 750-8971
Attorneys, Divorce Attorneys
Anderson, Robert F
208 Candi Ln
Columbia, SC 29210
(803) 252-8600
Attorneys,  Legal Service Plans,  Bankruptcy Law Attorneys,  General Practice Attorneys,  Banking &
Griffin , H Flynn III
208 Candi Ln
Columbia, SC 29210
(803) 252-8600
Attorneys, Legal Service Plans
Lake Law Firm
1034 Briargate Cir # 1
Columbia, SC 29210
(803) 750-8311
Civil Litigation & Trial Law Attorneys, Attorneys, General Practice Attorneys
Scarlata Tarik
1292 Yeamans Hall Rd
Hanahan, SC 29410
(843) 746-8023
Immigration Law Attorneys, Attorneys
Bowers & Siren
199 Bluffton Rd
Bluffton, SC 29910
(843) 757-8020
Family Law Attorneys, Attorneys, Legal Service Plans
Player Law Firm
1415 Broad River Rd
Columbia, SC 29210
(803) 772-8008
General Practice Attorneys, Attorneys, Legal Service Plans
Rogers Townsend & Thomas PC
220 Executive Center Dr
Columbia, SC 29210
(803) 771-7900
Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Real Estate Attorneys,  Legal Service Plans
Svalina Law Firm
2 Westbury Park Way Ste 201
Bluffton, SC 29910
(843) 837-7800
Attorneys,  Family Law Attorneys,  Corporation & Partnership Law Attorneys,  General Practice Attorn
Akins Dale
6 Johnston Way # A-2
Bluffton, SC 29910
(843) 757-7574
General Practice Attorneys, Attorneys, Legal Service Plans
Elrod Luke
264 Latitude Ln # 102
Clover, SC 29710
(803) 324-7574
Attorneys,  Social Security & Disability Law Attorneys,  Accident & Property Damage Attorneys,  Corp
Sherwood M Cleveland Pc
111 Executive Center Dr
Columbia, SC 29210
(803) 407-7463
Real Estate Attorneys, Attorneys
Eric C. Hale, LLC
125 Executive Pointe Blvd
Columbia, SC 29210
(803) 310-7331
Divorce Attorneys,  Attorneys,  Criminal Law Attorneys,  Personal Injury Law Attorneys,  Legal Clini
Jeffries Law Firm LLC
1345 Garner Ln
Columbia, SC 29210
(803) 772-7300
Attorneys, Employee Benefits & Worker Compensation Attorneys, Labor & Employment Law Attorneys
D Mays Dickey PA
301 Stoneridge Dr
Columbia, SC 29210
(803) 750-7255
General Practice Attorneys, Attorneys, Legal Service Plans
Wogan Timothy Law Office
7 Plantation Park Dr
Bluffton, SC 29910
(843) 815-6921
General Practice Attorneys, Attorneys, Legal Service Plans
Esquivel Hector F
7 Simmonsville Rd Ste 100 B
Bluffton, SC 29910
(843) 784-6900
Accident & Property Damage Attorneys, Attorneys, Criminal Law Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US