Paying your fair share of taxes is one thing, but what exactly is fair? Is a tax that is levied due to the event of your death really necessary and fair? The above questions are asked by critics of the federal estate tax, which is often referred to as the "death tax." It is true that the trigger that generates the tax bill is the death of an individual with resources exceeding the exemption amount, so in a very real sense it is a death tax. One of the arguments that is presented by those who … [Read more...] about 2013 Estate Tax Rate: Is That a Misprint?
A lot of people who own farms and ranches work hard to make a good living. However, they may not earn so much as to be considered wealthy by any stretch of the imagination. As a result, their savings may be relatively modest and fall well short of the estate tax exclusion amount. However, the land upon which they run their businesses may in fact be very valuable and exceed the amount of the estate tax exclusion. For this reason it can be difficult for farmers and ranchers to keep the property … [Read more...] about Keeping The Farm In The Family
It comes as a surprise to some people that there can be a tax imposed on your assets after you pass away. The extent of the taxation can vary depending on where you happen to reside in the United States. When you examine the facts you find that here in South Carolina we are rather fortunate in this regard. To understand these taxes you have to know the difference between an estate tax and an inheritance tax. The estate tax is imposed on the entirety of the estate before it is passed on to the … [Read more...] about Inheritance Tax & Estate Tax: One And The Same?
Back in 2010 there was a lot of uncertainty within the estate planning community. During that year the estate tax was repealed because of a provision contained within the Bush era tax cuts. But the tax relief act that provided this repeal was scheduled to sunset at the end of 2010. At that time the estate tax was going to return according to existing laws. The maximum rate of the tax was set at 55% and the exclusion amount was to be $1 million. These figures represented a step backward from … [Read more...] about As Year Progresses Clouds Of Uncertainty Gather
You have to be careful about believing everything that you hear, and this is especially true when it comes to matters of estate and financial planning. There are some urban myths circulating out there, and if you buy into them you could wind up failing to take the appropriate actions. This could ultimately lead to asset erosion as your resources are being passed along to your loved ones someday. The misguided notion that we would like to highlight here is the assertion that the federal estate … [Read more...] about Don’t Let Misconceptions Lead To Asset Erosion
The federal estate tax is much maligned in some quarters because when you go looking for logic to support the tax you tend to come up empty. As a result, many people feel as though they are being asked to part with hard-earned money that would otherwise have gone to their loved ones unfairly. Some individuals call the estate tax the death tax, and though proponents of the tax feel as though this is a sarcastic and dismissive distortion of the levy there is literal truth in this … [Read more...] about Why Should Dying Be A Tax Trigger?