Connecticut inheritance taxes and federal estate taxes are different. In some cases, depending upon the value of your estate, taxes may be owed both to the federal government as well as to the state government. You need to know tax rules, whether your estate is subject to taxation, and how taxes will affect your ability [ ] The post Connecticut Inheritance Taxes vs. Federal Estate Taxes appeared first on Nirenstein, Horowitz & Associates P.C..
Connecticut estate taxes can be assessed if the value of your estate exceeds a certain dollar value. Federal estate taxes can also be charged. In many situations, ownership of a family business will result in your estate being over the excludable amount, and thus being taxed. This, in effect, means the value of your company [ ] The post How Connecticut Estate Taxes Could Affect Your Family Business appeared first on Nirenstein, Horowitz & Associates P.C..
As you go through life providing for your family, you may see a comprehensive picture. Your success can build on itself, and as you get older, you may recognize the fact that you are going to be in a position to leave behind a significant legacy for your loved ones to draw from after you are gone. This is a rewarding position to find yourself in as a senior citizen, but you do have to be aware of the potential impact of estate taxes. There are some misconceptions that people often harbor about taxes, and in this blog post, we will look at four myths that people often buy into. 1.) Every estate is subject to the federal estate tax. When you hear about the existence of estate taxes, you may automatically assume that your estate will be reduced through the imposition of these taxes after you are gone. This may be the case, but in fact, most estates are not subject to taxation. This is because there is a federal estate tax credit or exclusion that allows you to transfer a certain amount t
There are some misconceptions out there about estate taxes. In this blog post, we will provide you with the five essential facts about death taxes that everyone should understand. Federal Estate Tax We have an estate tax on the federal level that is applicable in all 50 states. There is a certain amount that can be transferred before the estate tax would be applied. This is called the credit, exemption, or exclusion. The exclusion is inflation-adjusted each year. For the rest of 2016, the federal estate tax exclusion stands at $5.45 million. The top rate of the estate tax is 40 percent, so your legacy can be significantly impacted if the estate tax is applied to the taxable portion of your estate. Gift Tax If you have not looked into the subject, you wouldn t worry too much about the estate tax, because you may think that you could just give gifts to your loved ones to avoid the tax. Unfortunately, this is not possible, because there is also a gift tax in place. The exclusion is a uni
You may be concerned about taxes that can reduce the value of the estate that you are passing on to your loved ones. There is a federal estate tax, and in Connecticut, we have a state-level estate tax. The existence of these taxes is the bad news; the good news is that every estate is not subject to an estate tax. Federal Estate Tax Credit or Exclusion There is a federal estate tax credit or exclusion. This is the amount that you can transfer before the tax would be applied. During the rest of 2015, the federal estate tax exclusion is $5.43 million. The maximum rate that would be applied to the taxable portion of an estate on the federal level is 40 percent. If you are married, you should be aware of the fact that there is an unlimited marital deduction. You can transfer any amount of money and/or property to your spouse free of the federal estate tax. The tax-free transfers would be limited to the amount of the exclusion only when you are transferring assets to others. Connecticut St
You have to be aware of estate taxes when you are planning your estate as a financially successful individual. These taxes can significantly impact the future of your family if you are exposed. As a resident of the state of Connecticut, you have two different estate taxes that you may be forced to address. There is a federal estate tax that people all around the country must contend with, and in Connecticut, there is also a state-level estate tax. A certain amount can be transferred before estate taxes would kick in. This is called the credit or exclusion. For the rest of 2015, the federal estate tax exclusion is $5.43 million. Each year there are inflation adjustments, so you will see a slightly larger figure year-by-year if the current laws remain intact. The Connecticut state estate tax exclusion stands at $2 million at the present time. Because the state-level exclusion is considerably lower than the federal exclusion, you could potentially be exposed to the Connecticut tax even i
When you plan your estate, you may wonder about taxes that may be applicable. There is a federal estate tax, and it carries a $5.34 million exclusion in 2014. If the value of your estate does not exceed this amount, you do not have to worry about federal estate tax exposure. On the other hand, if you want to transfer more than $5.34 million, the estate tax looms large. The maximum rate of the federal estate tax is 40 percent. We practice law in the state of Connecticut. In our state there is a state-level estate tax. At the present time the exclusion is just $2 million. As a result, you could be exempt from the federal estate tax, but exposed to the Connecticut state estate tax. Inheritance Tax An estate tax is levied on the entirety of the taxable portion of the estate in question. An inheritance tax is levied on transfers to each nonexempt inheritor. There is no federal inheritance tax, but there are a few states in the union that have state-level inheritance taxes. Fortunately, t