12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
Edit & Print a Free Last Will & Testament for Zip Code 23230
  • Written by expert Attorneys
  • Guaranteed for your State
  • Personalized for your situation
  • Finish and print in minutes!

A Primer on Estate & Inheritance Taxes in Zip Code 23230

A Primer on Estate & Inheritance Taxes in Zip Code 23230


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.

 
Download & Print a Free VA Last Will Personalize This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
 
Download & Print a Free VA Power of Attorney Personalize This Document
Page 1
Page 2
Page 3
Page 4
Page 5
  Answer Easy
Questions
answer simple questions online step by step
Easy Questions, Instant Documents
  • Finish in Minutes
  • Download Immediately
  • Written by Attorneys
  • 100% Guaranteed
  Get Instant Legal
    Documents

Print, save or email your finished legal document immediately!
Last Will & Testament
Related Legal Services near Zip Code 23230
Killebrew Patrick D
5511 W Marshall St
Richmond, VA 23230
(804) 282-9555
Attorneys, Legal Service Plans
Barnes & Diehl PC
6806 Paragon Pl # 110
Richmond, VA 23230
(804) 762-9500
Adoption Law Attorneys, Attorneys, Family Law Attorneys
Marks & Harrison
7001 Forest Ave
Richmond, VA 23230
(800) 946-9461
Employee Benefits & Worker Compensation Attorneys, Attorneys, Legal Service Plans, Labor & Employmen
Partin Robert W
4928 W Broad St
Richmond, VA 23230
(804) 545-9402
Attorneys, Legal Service Plans
McDonald, Sutton & DuVal
5516 Falmouth St Suite 108
Richmond, VA 23230
(866) 288-9260
Personal Injury Law Attorneys, Bankruptcy Law Attorneys, Attorneys
Lawing Press Ltd
2007 N Hamilton St
Richmond, VA 23230
(804) 622-9181
Attorneys, Legal Service Plans
Parkinson Jr William C
5310 Markel Rd
Richmond, VA 23230
(804) 288-9026
Attorneys,  Bankruptcy Services,  Bankruptcy Law Attorneys,  Legal Service Plans
Carroll-Seli Tenley
4914 Fitzhugh Ave # 200
Richmond, VA 23230
(804) 254-9001
Attorneys
Cording Jason P
4914 Fitzhugh Ave # 200
Richmond, VA 23230
(804) 254-9001
General Practice Attorneys, Attorneys
Division of Child Support Enforcement
2001 Maywill St
Richmond, VA 23230
(800) 468-8894
General Practice Attorneys
Geoff McDonald & Associates, P.C.
3315 W Broad St
Richmond, VA 23230
(804) 888-8888
Personal Injury Law Attorneys,  Accident & Property Damage Attorneys,  Attorneys,  Employee Benefits
Tronfeld West & Durrett
4020 W Broad St
Richmond, VA 23230
(877) 927-8794
Civil Litigation & Trial Law Attorneys,  Attorneys,  Personal Injury Law Attorneys,  General Practic
Montgomery John
2116 Dabney Rd Ste A1
Richmond, VA 23230
(804) 355-8744
Attorneys,  Legal Service Plans,  Personal Injury Law Attorneys,  Insurance Attorneys,  Social Secur
Guare Timothy H
6802 Paragon Pl # 100
Richmond, VA 23230
(804) 288-8480
General Practice Attorneys, Attorneys
Ryscavage Kathyrn A
6802 Paragon Pl # 100
Richmond, VA 23230
(804) 288-8480
Attorneys
George J Kokorelis PC
4907 Fitzhugh Ave # 200
Richmond, VA 23230
(804) 358-8100
Attorneys, General Practice Attorneys, Legal Service Plans
Kokorelis George J.
4907 Fitzhugh Ave
Richmond, VA 23230
(804) 358-8100
Attorneys, Criminal Law Attorneys, Divorce Attorneys, Corporation & Partnership Law Attorneys, Busin
Baruch, Peter B Parcell & Webb
6802 Paragon Pl # 602
Richmond, VA 23230
(804) 358-8000
Attorneys, Criminal Law Attorneys, General Practice Attorneys, Legal Service Plans
Baruch Peter B
6802 Paragon Pl # 602
Richmond, VA 23230
(804) 358-8000
Attorneys, Criminal Law Attorneys, General Practice Attorneys, Legal Service Plans
Rosman Marvin
4912 W Broad St
Richmond, VA 23230
(804) 355-8000
General Practice Attorneys, Attorneys
The Harbison Law Firm, P
5211 W Broad St # 100
Richmond, VA 23230
(804) 888-8000
General Practice Attorneys, Attorneys, Legal Service Plans
Gayle Jr John Cole
5905 W Broad St # 303
Richmond, VA 23230
(804) 282-7900
Attorneys, Legal Service Plans
Kastenbaum, Robert G - Kerns Kastenbaum & Reinhardt
1809 Staples Mill Rd Suite 300
Richmond, VA 23230
(804) 355-7900
Attorneys, Criminal Law Attorneys, Family Law Attorneys, Labor & Employment Law Attorneys, Divorce A
Carl Edward
4900 Cutshaw Ave
Richmond, VA 23230
(804) 353-7600
Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US