Having you ever been curious or concerned about estate taxes?
Whether or not you currently have to worry about them comes down to two main factors.
I the word “currently”, because as I explain in a previous blog post in which I covered a brief history of the Estate Inheritance Tax, the tax laws can and probably will change.
Thankfully, tax payers have been operating under an era of comfort and predictability since 2011.
In 2011, the U.S. Congress passed an Act that created a baseline estate tax credit of $5M, to be adjusted each year for inflation, and a tax rate of at least 35% for every dollar above the credit (or exemption).
Since 2011, that previous exemption amount of $5M has increased, due to inflation, to $5.49M in 2017 (and The Tax Cuts and Jobs Act of 2017 actually doubled the credit to an astounding $11.18M per person in 2018.)
However, in order to comply with certain budgetary constraints, the TCJA contains a “sunset,” or an expiration date, for many of its provisions, including the Estate Tax Credit, on January 1, 2026, so let’s not count on it being that high forever.
If you are a part of a married couple, with a properly prepared Revocable Living Trust or a Revocable Family Trust, you can pass twice that amount without paying estate taxes. But, who really has $22.36M anyway?
The State of Idaho does not impose a gift tax, it does not impose an inheritance tax, and its estate tax expired in 2004. From - Idaho State Tax Commission’s Website.
Although the estate tax is not a concern for the vast majority of Idahoans, there are numerous other reasons to start working on your estate plan, including;
Nominating guardians for minor children;
Correctly distributing your estate if you are a part of a blended family;
Powers of attorney, including Health Care and Financial;
Ensure your wishes have a voice regarding the administrative process of your estate (i.e Probate);
Planning for families with special needs;
Minimizing costs if you own real property held in multiple states; and
Setting up future distribution plans for minor children.
Schedule your Complimentary Initial Consultation with Jeppesen Law, PLLC today to start your path towards organization! https://calendly.com/idahoestateplanning
Jeppesen Law, PLLC do not provide tax or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax or accounting advice. You should consult your own tax and accounting advisors before engaging in any transaction.