What to Know About Estate Taxes for Estate Planning
An estate tax is levied on an estate of a certain value. Because the tax rate is so high – up to 40% – it’s smart to do what you can through estate planning to reduce or eliminate the likelihood that your estate will be taxed at your death.
If someone dies in the year 2015 and their estate is worth less than $5.34 million, it will not be subject to estate taxes. If they die and their estate is worth $5.34 or more, it may or may not be subject to estate tax.
Here are some other things to know about estate tax.
Spouses and estate tax
Estate tax usually doesn’t apply if you are passing on your estate to your spouse. This is “usually” because in some cases, if your spouse is not a U.S. citizen, different rules apply. If your spouse is not a U.S. citizen, you will want to speak to an experienced estate planning attorney like Gem McDowell.
You and your spouse can combine your separate amounts together so you can freely pass $10.68 million to your heirs. And spouses can “share” the amount so as long as the couple’s combined assets are $10.68 million or less, they will not be subject to estate tax.
Remember that this amount can change so always check for the most current value when making your estate planning documents.
An experienced tax and estate planning attorney in Mt. Pleasant
This is a very simplified overview of estate taxes. To discuss your own estate, and how to best handle it to reduce or avoid taxes, contact Gem McDowell at his Mount Pleasant, SC office at (843) 284-1021. Gem is an estate planning attorney with experience in tax law, and he can work with you to develop an estate plan to meet your goals. Call today.