Our Firm Specializes in:

-Tax Audits (individual & business)
-Tax Liens & Levies
-Business Tax Services
-Taxes in Divorce & Bankruptcy
-Prior Years Non-Filed Returns
-Offers in Compromise
-Penalty Abatements
-Payroll Tax Problems
-Appeals
-State Tax Problems
-Employee Vs. Contractors Issues
-Monthly Tax Payment Plans
-Inheritance & Estate Taxes

 

INHERITANCE & ESTATE TAXES

Are you prepared?

The tax consequences of a death of a loved one can be enormous. You want to make sure that the estate you leave behind is protected from possible high tax payments.

What is the difference between an inheritance tax and an estate tax?

An inheritance tax is a tax imposed on the people (beneficiaries) who receive property from the deceased and is calculated separately for each beneficiary.

An estate tax is a tax imposed on the deceased's estate as a whole. The heirs might be liable for the tax if forms are not filled out properly or the executor fails to pay the taxes.

The federal government imposes an estate tax on all citizens and residents of the United States. It imposes no inheritance tax.

What are the rates for federal estate taxes?

The rates are steep, starting at 37% to a maximum of 55% for property worth over $3 million.

Are there ways to avoid federal estate taxes?

Yes, there are a few ways. The most popular method is frequently used by married couples with grown children. It is called an AB trust, though it is sometimes known as a "credit shelter trust", "exemption trust", "marital life estate trust", or "marital bypass trust."

A death in the family already poses enough stress and heartache. Allow us at Donald Graf & Associates take care of the tax consequences so you do not have to. We have Tax Consultants and Estate Planning Specialists who can help with the preparation and the consequences of an inheritance and an estate.

Call for a free consultation today.

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