Estate Tax
Federal and state estate tax rules had been in flux for years, but the passage of the American Taxpayer Relief Act of 2013 settled the dust -- at least for now. The law didn't actually make big changes to previous law, so the vast majority of estates still won't pay either state or federal estate tax. Here, find out whether or not your estate is likely to owe tax, and if so, how you can take steps now to minimize the bill.
Just a few states still impose a separate inheritance tax. How much inheritance tax you pay depends, unlike an estate tax, on how closely you were related to the person who left you money.
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Federal Gift and Estate Law in 2018 and Beyond
The Tax Cuts and Jobs Act of 2017 doucled the federal estate tax exemption, making federal estate taxes an issue for only the very rich.
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Very few people ever need to pay federal gift tax.
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Get informed about estate and gift tax laws with this easy introduction.
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Estate Tax: The New Rules for Same-Sex Couples
The Supreme Court's DOMA decision changes the rules for federal estate tax.
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Estate Tax: Will Your Estate Have to Pay?
Very few estates--only those larger than $11.2 million--may owe federal estate tax.
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With the "annuity" variety of this trust, you may be able make a donation and have tax-free money left over for your family.
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Keep the proceeds of your life insurance policy out of your taxable estate.
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Reduce Estate Tax by Making Gifts
Making gifts during your life can provide you with tax savings and more.
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The Charitable Remainder Trust: Do Good and Get Tax Breaks
Give to charity and get a tax benefit.
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Using QDOTs to Plan for Noncitizen Spouses
This kind of trust can defer estate taxes for wealthy couples.
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Even an estate that doesn't owe federal estate tax might owe the state.
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The estate tax gets a lot more attention, but people who inherit property may also have to pay a separate inheritance tax, which is imposed by six states.
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Indiana’s inheritance tax is imposed on certain people who inherit money from someone who was an Indiana resident or owned property (real estate or other tangible property) in the state.
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Anyone who inherits money or other property from someone in Iowa might owe state inheritance tax. The tax rate, however, is based on how closely the inheritor and deceased person were related.
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Kentucky, like other states, exempts close family members from inheritance tax.
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Most relatives who inherit are exempt from Maryland's inheritance tax.
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The surviving spouse is exempt from inheritance tax, but other inheritors may have to pay.
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New Jersey is one of only a few states that impose both an inheritance tax and a state estate tax.
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Pennsylvania collects inheritance tax when property is left to people who weren’t closely related to the deceased person.
More About This Topic
More Legal Topics
- Avoiding Family Disputes
- Charitable Gifts and Trusts
- DIY Estate Planning
- Estate Planning: An Overview
- Estates, Executors & Probate Court
- Financial Powers of Attorney
- Getting Your Affairs in Order
- Intestate Succession
- Living Trusts
- Living Wills & Medical Powers of Attorney
- Pets and Estate Planning
- Ways to Avoid Probate
- Wills
- Avoiding Family Disputes
- Charitable Gifts and Trusts
- DIY Estate Planning
- Estate Planning: An Overview
- Estates, Executors & Probate Court
- Financial Powers of Attorney
- Getting Your Affairs in Order
- Intestate Succession
- Living Trusts
- Living Wills & Medical Powers of Attorney
- Pets and Estate Planning
- Ways to Avoid Probate
- Wills
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