Common Estate Planning Mistakes That Boost Your Taxes
Successful estate planning is vital if you would like to maintain your wealth for the kids. Tired of creating these frequent estate planning mistakes if you would like to avoid paying unnecessary additional estate taxation (passing taxation ) to the IRS and state taxing authorities consequently decreasing your kids' inheritance. You'll be very happy to know these costly errors can easily be avoided with appropriate planning and top rated estate planning & probate law firms in Arizona.
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Failure to comprehend the importance of this State estate tax law.
Many nations have their property tax (death tax) and the overwhelming majority of people have"decoupled" their property tax against the Federal estate taxation, meaning your estate may be subject to state estate tax if no Federal estate tax is expected.
Misunderstanding the new Federal estate tax law which went into effect in 2011.
The Act provides for a departure tax exemption of $5 million to 2011 and $5.12 million to 2012. The Act also provides for"portability" between spouses of their death tax exemption for estates of decedents dying in 2011 and 2012.
The lack of a real estate tax exemption might be prevented in case terms in the will or living trust arrangements produce a"credit shelter" or"skip" trust in the death of the first partner. In a common credit shelter trust, the surviving partner is eligible to get all the income in the trust to their life and gets the right to withdraw principal for the health, education, care, and support in accord with their accustomed way of living.