How Can R-First Bookkeeping & Tax Practice Help Me Plan My Estate?
We know that planning an estate is a complicated and sometimes very emotional process. A well-planned estate that considers the possibility of an estate tax is essential to make sure your financial life can continue to provide for your ventures, causes, passions, and the people you love for years to come.
When it Comes to Estate Tax Planning, it’s Smart to Plan Ahead
The government of the United States of America collects tax on your right to transfer property after your death. To determine what kind of tax must be collected, an analysis is made of all your assets at the time of your death. The value of your assets aren’t always what they were when you bought them, and value is calculated based on the market at the time. A value of your “gross estate” is calculated. Deductions are made based on mortgages and other debts you may have, as well as state administration expenses.
More changes that are allowed include reductions for property that passes to a spouse, reductions for property that passes to registered charities, additions for the value of lifetime taxable gifts, and a reduction in tax amount based on available unified credit.