South Carolina estate planning lawyers often field questions about the federal estate tax. This year the tax is imposed on resources that exceed $5.12 million. The $5.12 million exclusion is going to be reduced to just $1 million in 2013.
There are over 8 million households in the United States with assets exceeding $1 million so this is a change that is impacting many Americans.
You should be advised that with the assistance of a good inheritance planning attorney there are things that can be done to react to exposure to the federal death levy. Exactly how to proceed will vary on a case-by-case basis so it is important to get personalized attention from an expert.
We do have one advantage as residents of South Carolina when it comes to taxes on asset transfers. A number of states throughout the United States (including our neighbors in North Carolina) have an estate tax on the state level to deal with in addition to the federal estate tax.
Fortunately, we are not among them.
Many people decide to relocate after they retire. If you are interested in making sure that your wealth is preserved for the well-being of your loved ones you would do well to understand the tax laws in the state that you are considering as a retirement destination.
If you move somewhere that has an estate tax (or an inheritance tax) on the state level you are suddenly faced with an added level of tax responsibility that can erode your wealth. This is an important factor to take into consideration when you are making plans for retirement.
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