- My Mom Wants to Add Me to Her $40k Savings Account So I Won’t Owe Taxes When She Passes. Will This Work?
Unfortunately, this scenario may not play out as intended, but it does have some potential benefits. Taxes on gifts and estates are governed by the same section of the tax code, a joint tax known as the gifts and estate tax. This tax applies to any unilateral transfer, which is defined as giving someone assets without… read more…
- What Is Not Included in a Decedent’s Gross Estate?
A decedent’s gross estate includes most assets and property they owned or had an interest in at death, used to calculate estate taxes. Some assets, however, may be excluded, affecting the estate’s value and tax obligations. Understanding what is included in the gross estate is important for inheritance, taxes, and the executor’s responsibilities. A financial… read more…
- How Do I Transfer Property to a Family Member Tax-Free?
Transferring property to a family member can be a thoughtful and strategic move, whether as a gift, part of your estate plan or a financial decision. However, it’s important to understand the potential tax consequences to ensure the transfer is both advantageous and compliant with tax laws. Many people look for ways to transfer property… read more…
- How to Avoid Probate in Oregon
Probate is a legal process that administers the estate of a deceased person. It can be complex, time-consuming and costly for many families in Oregon. On average, probate can take between six and 12 months to complete, and can cost anywhere from 2% to 7% of the estate’s total value. Here’s an overview of how… read more…
- How to Avoid the Estate Tax in Minnesota
The estate tax, sometimes called the “death tax,” applies to the total value of a deceased person’s assets before distribution to their heirs. In Minnesota, estates exceeding $3 million are subject to this tax, with rates between 13% and 16%. By comparison, the federal exemption is significantly higher at $13.99 million. This gap makes proactive… read more…
- How to Avoid Illinois Estate Tax
Illinois residents with estates valued at more than $4 million need to be aware of the potential tax implications and take proactive steps to minimize their tax liability. If you live in the Prairie State, here’s what you need to know about the estate tax and how to avoid it. A financial advisor can also… read more…
- How to Avoid Probate in New Jersey
The probate process involves validating wills, administering estates and ensuring the rightful distribution of assets, all under the watchful eye of the Surrogate’s Court. Whether you are drafting a will or handling an estate without one, understanding when probate is necessary and the steps involved will help you create an efficient estate plan. There are… read more…
- States That Won’t Tax Your Estate When You Die
The majority of states do not levy taxes on estates. But, if you live in a state that does, also, you could face a tax if your estate is valued at $5 million or less. Generally, estate taxes are a sizable concern for wealthier people. Luckily, a financial advisor can help you create an effective… read more…
- How to Avoid Probate in Oklahoma
The probate process in Oklahoma involves a series of court-supervised steps to ensure the decedent’s assets are distributed fairly, whether in accordance with a will or state intestacy laws. From filing a petition to distributing remaining assets, each stage is plays an important part in honoring the final wishes of the deceased. Yet, the time,… read more…
- How to Gift Real Estate Property to a Family Member
Transferring real estate can be difficult and cost you money in taxes, if you don’t do it the right way. So, if you want to gift real estate property to a family member, you’ll need to understand different types of property deeds and weigh the benefits and risks associated with this type of move. For… read more…
- How a Transfer on Death Deed Works in Ohio
Ohio no longer recognizes transfer on death deeds, having replaced them in 2009 with a transfer on death designation affidavit. This change in state law allows property owners to pass real estate directly to beneficiaries without probate, as long as the affidavit is properly recorded during the owner’s lifetime. The document remains fully revocable and… read more…
- How a Transfer on Death Deed Works in Illinois
A transfer on death deed (TODD) is a legal instrument that allows property owners to bypass probate and distribute real estate directly to a beneficiary upon their passing. Whether you’re an elderly homeowner, a single person or someone with a modest estate, a TODD might be a suitable tool for your estate planning needs. Here’s… read more…
- Payable on Death Account vs. Transfer on Death Account
Payable on death (POD) and transfer on death (TOD) accounts both offer a unique mechanism for streamlining the transfer of assets when an account holder dies. Assets held in POD and TOD accounts swiftly pass to the named beneficiary, bypassing the often time-consuming and costly probate process. Despite their similar names and purposes, the POD… read more…
- How to Avoid Oregon Estate Tax
Oregon’s estate tax applies to estates above $1 million, a more aggressive approach than the federal estate tax, which applies only to much larger estates. With tax rates ranging from 10% to 16%, this estate tax is a key concern when planning an estate if you live in Oregon. Several different approaches can avoid or… read more…
- How to Avoid Estate Taxes With Trusts
Estate taxes are a form of transfer tax that affects the very wealthy. For multimillionaire households, avoiding the estate tax is a significant issue. One tool that households can use to try to minimize their estate tax liability is the… read more…
- Florida Estate Tax
There is no Florida estate tax, though you may still be subject to the federal estate tax. It’s one of 38 states in the country that doesn’t levy a tax on estates, regardless of size. If you’re concerned about estate… read more…
- The Basics of Estate Tax Planning
Estate planning matters if you’re hoping to preserve as much of your wealth and assets as possible for future generations. One of the biggest challenges is finding ways to minimize your tax liability, as taxes can shrink the value of… read more…
- What Is a Small Estate Affidavit?
A small estate affidavit is a sworn legal document that may allow an estate to avoid going through probate. Small estate affidavits are permitted in many states, as long as the value of the estate is small enough. Using one… read more…
- Guide to Roth IRAs and Estate Taxes
Tax planning for your retirement accounts is an important part of setting your beneficiaries up to maximize the benefit of what you leave behind after you die. If you have a Roth IRA, you can effectively avoid estate tax issues… read more…
- Do Beneficiaries Pay Taxes on Estate Distributions?
When someone receives assets from an estate, taxes may or may not apply depending on several factors, including the type of asset, the total value of the estate and state-level inheritance tax laws. In general, beneficiaries do not pay income tax on inherited cash or property, but they may owe taxes on certain types of… read more…
- How Does an Estate Tax Marital Deduction Work?
Estate planning as an individual is complicated enough, but planning for it in a marriage can create greater difficulties. Working as a unified partnership for your joint estate’s future means that you both will have priorities you want to bring into… read more…
- Guide to the Washington, D.C. Estate Tax
Washington, D.C. does levy an estate tax on the estates of certain people after they have died. Specifically, the D.C. estate tax applies to any estate worth more than $4,254,800 in 2022. This is up from past years. The rate… read more…
- What Is the “Death Tax” and How Does It Work?
Dying may get you out of a lot of things, but not taxes. If you have a lot of property and assets you want to leave to your children or other heirs, it may be subject to taxation. Federal and some… read more…
- Wyoming Estate Tax
Wyoming does not levy an estate tax. There is a federal estate tax, though, that will apply to Wyoming residents with large enough estates. This page will walk Cowboy State residents though what they’ll need to know about the estate… read more…
- Tennessee Estate Tax
Tennessee has no estate tax, regardless of the size of your estate. There is a federal estate tax, though, that will apply to Volunteer State residents who have estates of sufficient size. This page will walk Tennesseans looking to plan… read more…