Estate Taxes

//Estate Taxes

Estate taxes are due when someone of significant net worth dies.  There is a Federal Estate Tax system and some states, but not all, have their on State Estate Tax system.  Federal estate tax rates are extremely high at 40% and the States are more of a marginal system varying from 8% to 16%.  The Estate Tax system is often called the death tax, but only affects very few individuals in America.

Where are Estate Taxes Going?

The question I hear the most when I am teaching classes are, where do you think the Estate Taxes are going?  I always respond, they aren't disappearing. Period.   The current administration (along with the last one) is running through money like it was beer at a keg party!  So is it likely that we are going to cut a tax that only affects the top 2 to 4% of the Country? NO WAY. Bills Proposed by Congress for the Estate Tax I cam across a great article on NACS Online titled, Deadline Looms on Estate Tax, which succinctly highlights the bills out there, H.R. [...]

By |2013-09-26T15:01:50-04:00September 10th, 2009|Estate Taxes|0 Comments

Audit Worries – Your Surviving Family may be in for a Suprise

I was reading my fav. magazine today, Trusts and Estates and came across an amazing article.  Trusts and Estates Magazine has been around since the early 1900s and is read by most of the Trust and Estates world - it costs $35 an issue, but luckily work picks it up!   The article titled, "The Audit Rate Is Skyrocketing" written by Richard A. Behrendt (the full article can only be read with a subscription so I will just highlight it).  Before we get started, if you don't understand the simples behind the so-called "Death Tax" check this past post.  Simply put if your assets are under $3,500,000 [...]

By |2013-09-26T15:01:57-04:00February 12th, 2009|Estate Taxes|1 Comment

Simple Explanation of the Federal Estate Tax

On a daily basis I have to turn complicated tax issues into a simple discussion.  A discussion that I have to discuss/teach very often is the Federal Estate Tax.  Before we discuss the easy way to determine your Federal Estate Tax bill some caveats: The calculations below are commonly referred to as "Napkin Math."  Meaning, it is simplified and thus can be done on the back of a napkin.  We are not using exact numbers, exact deductions, exact credits, etc.  Rather, I am providing tools to understand what the Federal Estate Tax actually is, and how it affects people. Second, I am [...]

By |2013-09-26T15:02:14-04:00September 8th, 2008|Estate Taxes|2 Comments