So, it is now into March. Many of us are excitedly awaiting tax returns (Remind me, why are we “lending” money to the Government without requiring interest) or dreading the fact that we have to pay the man.
As most are aware, there are many ways in which we are taxed. One last way we are taxed are Estate, or Death Taxes. These are taxes that your estate will pay just for having a certain amount of assets to pass, while the receivers, or beneficiaries, will have to pay taxes on the inheritance they receive. With taxes on the mind, I might as well jump on the bandwagon and write about taxes from an estate planning perspective; The Estate Tax.
Fret not, I bear great news. If you live and die in Idaho, the probability is that you will not pay Estate Taxes. I use the word probably because there is a chance you exceed the Unified Tax Credit, or Idaho could change its tax laws, or Congress could change the Federal tax laws. Real solid footing, right?
In our current environment, the probability is that an Idahoan will not have an estate that is subject to Estate Taxes. The reason? The Federal Unified Tax Credit was indexed at $5M per person, plus inflation. Being indexed is kind of like saying the UTC is permanent, until it is not. However, the credit still receives support from both political parties. As of 2015, each individual can pass up to $5.43M, or each married couple can pass upto $10.68M before being subject to Estate Tax.
That is not to say that some basic tax planning should not be included in an estate plan. This is true because we know there is more than one way to be taxed and the Unified Tax Credit can be amended.
Schedule a conversation with Justin Jeppesen to take the first step towards creating your complete estate plan! With our Free Initial Consultation we help our clients explore their own situations and plan for their futures. If you have more questions, we'd love to help! Contact Jeppesen Law now, (208) 477-1785.