There are many things to know about trusts and estates— and how taxes affect your estate is one of them.
Depending on the value of your estate, there may be some federal taxes that you do not have to deal with, but for the most part, you or your surviving beneficiaries may have a good amount of tax-related paperwork to file.
Here are two things you should know about estate taxes when you are making your estate plan.
From a tax standpoint, most people do not have to pay the federal estate tax — the so-called “death tax.” This is because their estates fall below the federal threshold for paying the “death tax.”
But consult with experienced counsel because your estate may be subject to state inheritance or estate taxes.
Federal Gift Taxes.
When making your estate plan, you will need to consider how the federal gift tax and the federal estate tax affect your estate. These taxes are part of a unified tax system which means that you will need to take them into account when making your overall estate tax strategy.
Other estate taxes can affect your estate as well. For a comprehensive understanding of how estate taxes can affect your estate, contact experienced counsel.
When planning your estate, be sure to educate yourself about taxes and how they can impact your estate.
Work with a Trusts and Estates Attorney.
If you need help planning your estate, callus. We offer FREE consultations. We have offices in Sedona, Arizona but we serve Verde Valley and all of Arizona. Simply call us at 928-282-1483 or contact us here.