ESTATE AND GIFT TAXES
Federal and state taxes are deducted from the assets in your estate. If you fail to plan for estate taxes, your estate could be reduced by federal taxes as high as 55%, as well as by state inheritance or estate taxes. Your estate for federal estate-tax purposes includes, but is not limited to:
¨ At least a portion of the value of the property you hold jointly with others;
¨ Half of the value of property you hold jointly with your spouse;
¨ Property held in your own name;
¨ The face value of life insurance you own on your life;
¨ Retirement plans in which you have an interest.
You may deduct from your gross estate the administrative costs of the estate, funeral expenses, debts you owe at the time of death, and charitable donations. In addition, the marital deduction allows you to leave any amount of property to your spouse tax free. However, it then becomes important to plan for your spouse's death; when your spouse dies, the property in his or her estate will be subject to tax.
Return To Estate Planning Menu
DISCLAIMER: Law Offices of Walter J. Zukowski & Associates does not take responsibility for how you use this document. By use of this document, you acknowledge that you have read the sub-page entitled, "Terms and Conditions", and agree to be bound by them. You are strongly advised to consult with your own attorney.