Estate Tax Issues and Information

Friday, July 31, 2015

Estate taxes are taxes on all property, which includes assets such as cash, trusts, annuities, real estate, stocks, etc.  Estate taxes can be transferred from the deceased to their heirs.  Often times, estate taxes are paid by the wealthy with large tax breaks if an estate’s value currently exceeds $5.43 million per person (a significant increase from $650,000 in 2001) or $10.86 million for married couples. This translates to only 0.2% of individuals owing estate taxes.  Estate taxes are a major source of revenue for the federal government, which could generate close to $250 billion over the next 10 years. The tax rate is 16.6% and the top statutory tax rate is 40%.

We are the Strategic Tax Lawyers, a firm with an Estate Tax Attorney, Offshore Tax Attorney, and an Intent to Levy Attorney.  Collectively, we have many successful years of experience dealing with the tax law and winning tax-related cases. At this time, we want to notify you about the importance of planning for your estate package by making sure that your estate taxes are in order, and that your assets are protected against the state and federal courts, as well as the IRS. The Strategic Tax Lawyers are knowledgeable about the new changes to the estate taxes filing forms and requirements, as these are always changing. 

Simple estates usually do not require a taxpayer to file an estate tax return. When calculating the value of estate taxes, the fair market value of these items is used, not the value when it was acquired or the amount that was paid for them.  This would equal the "gross estate." The estate taxes on an estate that was $6 million would be approximately $570,000 since the amount that would need to be paid would need to exceed $5.43 million. Also, tax professionals and tax attorneys can use loopholes to get their clients to avoid estate taxes.  There are ways to keep estates tax-free and allow taxes to be avoided. Some loopholes include grantor retained annuity trusts (GRAT) which allow the assets to be tax-free. There are estimates that show that extreme amounts of estate taxes, upwards of $100 billion, have been avoided by loopholes. 

The U.S. taxes estates less and more informally than in other countries.  Yet, the estate tax is a very advanced component of the IRS tax code.

The Strategic Tax Lawyers, LLP are a firm of established Estate Tax Attorneys, Offshore Tax lawyers, and an Intent to Levy Attorney. We, at the Strategic Tax Lawyers Firm, are experts in the IRS tax code with years of experience dealing with estate taxes and other tax-related matters.  Call the Strategic Tax Lawyers at (800) 669-4775 for a free consultation to assist you with your case.