The Death Tax Series (Part 2 of 3)<\/h1>\n

We all worry about income tax, but there are other taxes that you need to consider when you\u2019re dealing with an estate or a property that is switching hands either at death or during life. In part 1 we covered the gift tax. In part 2 we will cover the federal estate tax. Part 2: the Federal Estate Tax<\/p>\n

Understanding The Federal Estate Tax \u2013 Dealing with the loss of a loved one is never easy and the extra burden of now having to manage the estate<\/a>, its finances and taxes can be quite overwhelming. \u00a0The Federal Estate Tax is a tax on your right to transfer property at death.\u00a0 It is paid by the estate\u2014not the heirs. The rate is a flat 40%. The good news is that unless the estate is worth over $5.45 million and you did not use any of your gift exemption during your lifetime, you don\u2019t owe a cent to the government.<\/p>\n

Additionally, for married couples, a surviving spouse may elect to pass any of the deceased spouse\u2019s unused exemption to his or her estate.\u00a0 This is called portability and may be elected on a timely filed estate tax return.\u00a0 Therefore, even if you do not believe you will owe taxes on your loved one\u2019s estate, it is still important to consult a CPA to ensure you understand and take advantage of portability.<\/p>\n

Stay tuned next week when we will wrap up this 3 part series. In part 1<\/a>, we will discuss the gift tax. in part 2, we will discuss the federal estate tax. In part 3<\/a>, we will put it all together and conclude.<\/p>\n

In the meantime, feel free to contact us for a free consultation.<\/p>\n","protected":false},"excerpt":{"rendered":"

In part 1 we covered the gift tax. In part 2 we will cover the federal estate tax. The Federal Estate Tax is a tax on your right to transfer property at death. Learn how to mitigate the this tax. <\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[1,11],"tags":[],"class_list":["post-842","post","type-post","status-publish","format-standard","hentry","category-blog-home","category-estate-planning"],"_links":{"self":[{"href":"https:\/\/bryantelderlaw.com\/wp-json\/wp\/v2\/posts\/842","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bryantelderlaw.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bryantelderlaw.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bryantelderlaw.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/bryantelderlaw.com\/wp-json\/wp\/v2\/comments?post=842"}],"version-history":[{"count":1,"href":"https:\/\/bryantelderlaw.com\/wp-json\/wp\/v2\/posts\/842\/revisions"}],"predecessor-version":[{"id":2891,"href":"https:\/\/bryantelderlaw.com\/wp-json\/wp\/v2\/posts\/842\/revisions\/2891"}],"wp:attachment":[{"href":"https:\/\/bryantelderlaw.com\/wp-json\/wp\/v2\/media?parent=842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bryantelderlaw.com\/wp-json\/wp\/v2\/categories?post=842"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bryantelderlaw.com\/wp-json\/wp\/v2\/tags?post=842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}