Many clients are curious or concerned about estate taxes. Whether or not you currently have to worry about them comes down to two main factors. I say currently, because as I explain in a previous blog post in which I covered a brief history of the Estate Inheritance Tax, change can and will probably happen.
Thankfully, tax payers have been operating under an era of comfort and predictability since 2011. That year Congress passed an Act that created a baseline estate tax of $5M, to be adjusted each year for inflation, and a tax rate of 35% for every dollar above the exemption. Since 2011, that previous exemption amount of $5M has increased, due to inflation, to $5.48M in 2016. And, for married couples with a properly prepared Revocable Living Trust or a Revocable Family Trust, they can pass twice that much without paying estate taxes.
Idaho has no gift tax, no inheritance tax, and its estate tax expired in 2004. From - Idaho State Tax Commission’s Website.
Although estate taxes are not a concern for many Idahoans, there are numerous other reasons to start working on your estate plan, including; guardians for minor children, blended families, powers of attorney, avoiding probate, planning for families with special needs, real property held in multiple states, and setting up future distribution for minor children. Contact Jeppesen Law, PLLC today to start your plan. 208-477-1785.