The subject of taxation on inheritances can be a bit confusing. There are federal taxes, and you hear about state-level taxes. In this post, we will explain how an out-of-state tax can affect a resident of Oklahoma. Inheritance Tax An inheritance tax and an estate tax are two different types of taxes that can be levied when someone dies. Here we will look at the inheritance tax first. This tax can be imposed on transfers to each individual inheritor when one's estate is being … [Read more...] about Can an Out of State Inheritance Tax Affect You?
Estate planning attorneys field many questions about taxes on inheritances and people usually have negative expectations. They are pleasantly surprised when they hear the facts. We will pass along the good news and a little bit of bad news in this post. State-Level Estate Tax A dozen states and the District of Columbia have state-level estate taxes. Oklahoma does not have an estate tax, but if you own property in a state that does, the tax will apply to your estate if its value exceeds the … [Read more...] about Is There a State Estate Tax in Oklahoma?
Runoff Elections in Georgia resulted in a Senate controlled by Democrats. Could this impact your Estate Planning? It’s possible. by Steve Hartnett The estate tax exclusion is the amount you can give without facing an estate tax. Under current law, you may give this amount during life or at your death and after that amount is used, you face a federal tax of 40% on assets beyond that amount. The amount has fluctuated a great deal over the years. It was $675,000 as recently as 2001. … [Read more...] about Biden Administration Could Reduce Estate Tax Exclusion
If you are married, you probably want to leave all, or a significant portion, of your estate to your spouse. For the average estate plan, doing so isn't cause for special consideration. If, however, your spouse is not a citizen of the United States, you will need to take that into account. An Overland Park estate planning attorney at Parman & Easterday explains why making your non-citizen spouse a beneficiary of your estate must be accomplished with care. The American Melting … [Read more...] about Can My Non-Citizen Spouse Be a Beneficiary of My Estate?
One of the most common additions to a well thought out estate plan is a trust, due in large part to the fact that a trust can accomplish a wide range of estate planning goals. To know whether a trust could be a beneficial addition to your own estate plan, you need to understand your options and how each type of trust operates, as well as the various benefits each type of trust offers. For example, when irrevocable trusts sell assets, are capital gains taxes due, and if so, who pays the … [Read more...] about Do Irrevocable Trusts Pay Capital Gains Taxes?
Estate planning should accomplish several inter-related goals. Along with ensuring your estate is distributed according to your wishes after you are gone, your estate plan should protect your assets while you are alive and minimize or eliminate estate taxes at your death. Your retirement plan should also work in harmony with your estate plan. If you own an IRA, you need to understand that the IRA probably will be taxed as part of your estate when you die. Our IRA estate planning attorneys at … [Read more...] about Is an IRA Taxable As Part of an Estate?
The new tax law doubled the estate tax exclusion through 2025. This article looks at the exact amount of the new exclusion (it’s not what you thought) and how it might be useful. The article also examines why there’s no reason not to take advantage of the newly-doubled exclusion. Treasury Releases New Inflation Adjustment … [Read more...] about Treasury Releases New Inflation Adjustment
Some of the most common misconceptions people have about estate planning involve estate taxes. How much will you have to pay? When will you have to pay it? Is there anything you can do to lessen the amount of taxes you're facing? Thinking about estate taxes as you go about the estate planning process is important, but it's also not as big an issue as you may believe. While there are estate tax concerns that you and your attorney will talk about, you may not have to worry about the tax at all. … [Read more...] about Will You Need to Worry About Estate Taxes in 2016?