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ESTATE TAXES
Many people do not know that the federal government imposes a tax
upon your death called the estate tax. Its a hefty tax starting at
around 50%. The exact rate currently changes each year. Many
states have their own inheritance tax, although in California it has
largely been abolished for practical purposes. There is also a
corresponding gift tax so that you cannot avoid the estate tax by simply
giving away everything before your death.
Fortunately, for many, there is a large exemption. Currently,
the exemption changes almost annually. You have to count all your net
assets to determine if you are under the exemption amount, including any
proceeds which will come from your life insurance policies.
Through careful planning you can avoid, or minimize, the amount of
estate taxes your survivors will have to pay to the government. |
