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Will my estate be subject to any taxes and if so what types of tax?

Video Transcript

There are different types of taxes that apply in connection with a death. First, there’s the Estate Tax. Each individual has an Estate Tax Exemption. Currently the exemption is $5.45 million in 2016. If someone dies with assets under that amount, there should be no estate taxes. If somebody dies with more than that amount, there could be estate taxes, and the tax rate is very high. It’s 40% for every dollar over the exemption amount. There’s also the income tax to consider. In most cases for income tax purposes, death should be a tax free event. When a Beneficiary receives assets, that is not considered taxable income to the Beneficiary. When they receive assets, they also get a step up in tax basis to the value that it was on the date of the Decedent’s death. If they sell the assets shortly after death, there should be very little capital gains.

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2500 North Military Trail, Suite 312
Boca Raton, Florida   33431
Phone: (561) 392-1800

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