How Do You Minimize Estate Taxes Spend, Gift, Plan, Move?
While the federal estate tax was repealed on January 1, it is scheduled to come back in 2011 with a $1,000,000 exemption. Many states also assess estate taxes – Connecticut, Delaware, D.C., Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Ohio, Oregon, Rhode Island, Tennessee, Vermont and Washington; while seven states assess inheritance taxes – Indiana, Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania (Maryland and New Jersey collect both). For people whose estates will be taxable at the state and/or federal level, they have five options to reduce their estate tax bill.1. Spend their assets.This is the quickest and easiest way to reduce the value of an estate. The obvious problem with this approach is that no one knows how long they will live and how much money they will need. Thus, drastic spending is only an option for people who have accumulated a significant amount of wealth and aren’t afraid of running out of money before they die.zSB(3,3)2. Gift th
While the federal estate tax was repealed on January 1, it is scheduled to come back in 2011 with a $1,000,000 exemption. Many states also assess estate taxes – Connecticut, Delaware, D.C., Hawaii, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Ohio, Oregon, Rhode Island, Tennessee, Vermont and Washington; while seven states assess inheritance taxes – Indiana, Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania (Maryland and New Jersey collect both). For people whose estates will be taxable at the state and/or federal level, they have five options to reduce their estate tax bill.1. Spend their assets.This is the quickest and easiest way to reduce the value of an estate. The obvious problem with this approach is that no one knows how long they will live and how much money they will need. Thus, drastic spending is only an option for people who have accumulated a significant amount of wealth and aren’t afraid of running out of money before they die.zSB(3,3)2.
