|
Estate taxes have to be paid 9 months from the death of the decedent and it is advisable to have an estate planner to help you with the legal strategies that can drastically reduce the estate taxes when the estate is evaluated and passed on to your heirs.
Usually estate planners charge by the hour and hiring one can be rather expensive. However, the money you spend on carefully planning your estate can be useful in terms of the amount of taxes assessed when you pass away.
When planning your estate, be very clear about who will receive your assets. Make sure you have the name of the beneficiary and along with his or her age. You also need to be clear about your object for making an estate plan. Most of us want our estate to be transferred after our deaths to our heirs, so have a proper inventory of all your assets and properties. You also have to name an executor for your estate. Once you die, the executor has nine months to file the estate taxes.
It is quite possible that if the beneficiary is a spouse or child, the tax liability will be reduced as estate tax rate are based on categories and spouse and children are in Class A, which has the least taxes. The first $2 million will be tax free or tax exempt and thereafter a 45 percent rate is levied on the estate.
More Articles :
|
|