| > Normal 0 false false false MicrosoftInternetExplorer4 | | | | estimated 95% federal estate tax liability of the |
| /* Style Definitions */ table.MsoNormalTable | | | | American public upon their death, which is a testament |
| {mso-style-name:"Table Normal"; | | | | of estate taxes. According to the IRS rules, a |
| mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; | | | | person’s assets will be exempted for the first |
| mso-style-noshow:yes; mso-style-parent:""; | | | | $1 million from all estate taxes. For a married couple, |
| mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; | | | | each one is entitled a separate $1million tax |
| mso-para-margin-bottom:.0001pt; | | | | exemption. Throughout the years, this rate has been |
| mso-pagination:widow-orphan; font-size:10.0pt; | | | | increasing steadily: in 2004 to $1.5million, in 2006 to |
| font-family:"Times New Roman"; | | | | $2million, and in 2009 to $3.5million. There are even |
| mso-ansi-language:#0400; | | | | reports that the tax code will be changed again in |
| mso-fareast-language:#0400; | | | | 2010. |
| mso-bidi-language:#0400;} | | | | Furthermore, an individual’s estate that is left to |
| Upon a property owner’s death, various taxes | | | | a spouse upon death is also exempted from any |
| will then have to be applied in the event of property | | | | federal estate tax. Individuals who have assets |
| transfers. There are two general types of taxes and | | | | beyond the minimum tax exemption can still look for |
| these include the estate tax, and the inheritance tax. | | | | legitimate and legal ways to decrease any tax liability. |
| Basically an estate tax, which is considered as a | | | | It is recommended that you should consult a tax |
| government tax, is applied during the transfer of | | | | professional before preparing a will to determine the |
| properties upon a person’s death. Assets will | | | | best way of asset management. |
| have to be assessed in order to determine the amount | | | | For those with a total estate value less than $1million, |
| of estate tax, which is paid out in advance. These | | | | there is a minimal or even no estate taxes. The fact |
| assets will then be properly distributed to the different | | | | is that most estate tax laws are directly influenced by |
| beneficiaries. On the other hand, an inheritance tax is | | | | the federal estate tax regulation. With this, for those |
| the amount of tax deducted on the actual property | | | | with estate properties under $1million, there is a level of |
| being transferred to the inheritor. The amount of tax | | | | exemption from the state. Furthermore few states |
| is determined by a recognized financial organization, or | | | | impose additional estate taxes. |
| in this, case the state or federal government. | | | | Additionally, less than half of US states impose |
| Different states have different local rules and | | | | inheritance tax to an individual who has inherited a |
| regulations regarding the amount of additional estate | | | | property. It is quite noticeable that there are high tax |
| taxes or inheritance taxes. Furthermore, the federal | | | | exemptions on inheritance taxes, which are scaled |
| government or the state could impose a gift tax on a | | | | down so that any direct family will have lower tax |
| property transfer. Basically the state of Nevada is | | | | rates than their more distant relatives or any unrelated |
| the only place where they do not impose any estate, | | | | individual who has received an inheritance. |
| inheritance, or gift taxes. Before thinking about | | | | Most Americans have already taken into account tax |
| transferring your properties, do know your local state | | | | considerations when preparing for a will. These |
| tax situation beforehand. | | | | factors can usually affect only a fraction of the |
| The Federal Income Tax Code has released an | | | | inheritance. |