When a person dies, their estate has to go through the probate process. In the estate process, your assets will go through some cumbersome tax process, like the estate tax, inheritance tax, and income tax. The federal estate tax is the tax that you have to pay the Internal Revenue Services for the transfer of property. The amount of tax your estate pays depends on the values of the estate. On average, the estate tax can be pegged at around a maximum of 35% and between 18% and 40%. Therefore, it is imperative to know how much your estate will have to pay taxes. It would be best to hire a probate attorney near me 11568 to understand the value of your estate. They can also help you avoid paying such a hefty amount by decreasing your estate value.
Hire Probate Attorney Near Me 11568 To Understand Estate Tax Rates
When it comes to estate taxes, not every estate will have to pay the tax. You can avoid paying a lot of money as taxes if you can decrease your estate value. If your estate value is more than $11.58 million, only then you will have to pay taxes on the excess amount. If you can bring down your estate’s value, you can avoid paying a lot of taxes to the government. In case you are thinking of decreasing your estate’s value, it would be best to hire a probate attorney near me 11568. They will introduce the different methods you can use to decrease the value of your estate. Below are the tax brackets of any appropriate amount of estate.
Different Rates For Estate Tax
|18%||$0 – $10000||18% of the total amount.|
|20%||$10,001 – $20,000||$1800 plus 20% of the excess amount|
|22%||$20,001 – $40,000||$3800 plus 22% of the excess amount|
|24%||$40,001 – $60,000||$8200 plus 24% of the excess amount|
|26%||$60,001 – $80,000||$13,000 plus 26% of the excess amount|
|28%||$80,001 – $100,000||$18,200 plus 28% of the excess amount|
|30%||$100,001 – $150,000||$23,800 plus 30% of the excess amount|
|32%||$150,001 – $250,000||$38,800 plus 32% of the excess amount|
|34%||$250,001 – $500,000||$70,800 plus 34% of the excess amount|
|37%||$500,001 – $750,000||$155,800 plus 37% of the excess amount|
|39%||$750,001 – $1,000,000||$248,300 plus 39% of the excess amount|
|40%||$1,000,001 – Up||$345,800 plus 40% of the excess amount|
Hire Probate Attorney Near Me 11568 To Find Out Which States Have Estate Tax
Along with the federal estate tax, sometimes you might have to pay state estate tax as well. This tax is only applicable if you lived in a certain state. Most of the state estate tax exemption limits are way below the federal estate tax. If you live in one of the states mentioned below, you will have to pay a hefty amount as tax for your estate. If you are looking for ways to reduce your estate’s value, then hire a probate attorney near me 11568. The states not mentioned in this list, do not have any state estate tax.
State Estate Tax Exemption Limit
|State||Exemption Limit For State Estate Tax|
|District Of Columbia||$5.682 Million|
|New York||$5.74 Million|
|Rhode Island||$1.562 Million|
Ask Probate Attorney Near Me 11568 How To Reduce Or Avoid The Tax
As we can see, your estate ends up paying a considerable amount of taxes. Hence, it is essential to reduce the estate’s value and try to pay less in terms of taxes. Now, there are a lot of methods that you can use, but it can be a confusing and challenging process. Therefore, it would be best to hire a probate attorney near me 11568.
Using a probate attorney, you can reduce your estate’s value and still manage to keep the family’s assets. If you put assets in a trust or give away properties as gifts, these assets will never go through the probate process. And you won’t have to pay any tax on these assets.
We have seen the different tax brackets which are applicable during the probate process. If you have a large estate, then your estate will end up paying a huge tax. It will reduce the value of your estate, and your family members will inherit a part of your estate. Therefore, you must hire a probate attorney near me at 11568 to avoid paying taxes.