Some people have a tendency to use the terms “estate tax” and “inheritance tax” interchangeably, but the two are actually very different things. Estate Tax “Estate Tax” refers to a federal or state tax that’s assessed on the estate of a deceased individual, provided that the value of the estate is more than a certain threshold. Not all states impose an estate tax. And, as for the federal estate tax, it’s been repealed for the year 2010, but it’s scheduled to make a comeback on January 1, … [Read more...] about Are Estate Tax and Inheritance Tax the Same Thing?
With the estate tax making a comeback next year, people with taxable estates are once again looking for ways to minimize- or even avoid – their estate tax bill. You’re taxed on the value of assets you have in your “gross estate” at the time of your death, so the way to reduce your tax bill is to reduce the size of your gross estate. Here are the methods for doing that: Spend, Spend, Spend. Spending your assets is the obvious choice, and it’s also likely the least attractive. While spending … [Read more...] about How to Avoid Estate Taxes