Although this discussion focuses on the federal estate tax and does not review state estate taxes
, the relevant state rules must also be addressed as part of an individual's financial plan.
The bill will waive all penalties on unpaid estate taxes
and instead impose a unitary tax rate of six percent.
For individuals looking to reduce income taxes as well as future estate taxes
, however, New Jersey will not prove very attractive.
It is also worth noting that the majority of states do not impose a gift tax, so lifetime gifting strategies can be particularly effective when attempting to reduce the amount subject to state estate taxes
upon the client's death.
Six states (Indiana, Iowa, Kentucky, Nebraska, Pennsylvania, and Tennessee) collect a separate inheritance tax without an estate tax, and two states (Maryland and New Jersey) collect both an inheritance tax and state estate taxes
Rather than lose its rightful share of tax revenues, Illinois correspondingly amended its laws in 2003 (in a process known as "decoupling") (5) to provide that state estate taxes
would continue to be based on the repealed 2011 credit taking into account a separate Illinois estate tax exclusion amount.
In midtown during the five-year period from 1995 to 2000, real estate taxes
increased only 49 cents psf, or 5%.
On their 2001 joint return, they deducted their proportionate share ($10,489) of the housing corporation's real estate taxes
from their adjusted gross income.
Moreover, some argue that the tax is wasteful because it takes resources away from investment and growth opportunities and shifts it into planning activities solely designed to decrease or eliminate estate taxes
No one knows what the future holds for estate taxes
in the United States, but that uncertainty didn't stop insurers last year from dramatically increasing their sales of survivorship life products, the kind of insurance best suited for estate planning.
My children might have to break up the tree farm or sell off timber to pay the estate taxes
when I die.
5 million in 2009, then climinates estate taxes
altogether in 2010 only to return them in 2011 to the 2001 levels--a 55 percent tax rate and $1 million exemption.
The credit for prior transfers allows the personal representative to claim a credit against the decedent's federal estate tax liability for federal estate taxes
which were paid in another estate in which the current decedent was a beneficiary.
Since the client had a properly formed and funded living trust, the estate taxes
totaled approximately $2 million.
They own their home as joint tenants, paying mortgage interest of $11,700 a year and real estate taxes