Free Articles  >>  Legal >>  Page 352  >> 

Last Will and Testament Death Taxes

The rules of some death taxes vary according to the state in which the testator resided. Although the federal estate tax has been dubbed the death tax, this phrase is also commonly used to designate the state inheritance tax in those states that impose it.

What Are Death Taxes?

The term death tax is used to refer to an inheritance tax or an estate tax. More specifically, a death tax is one that is imposed an individual’s property when it is transferred to the inheritors of the estate upon his death. The Internal Revenue Service, or IRS, calls this tax the federal estate tax and defines it as “a tax on your right to transfer property at your death.”

The origination of this particular phrase, death tax, dates back to a time when it was created as a negative connotation for the federal estate tax. The tax itself might be determined on the value of the property or it might be based on the relationship of the inheritor to the decedent.

What is the Federal Estate Tax Imposed Upon?

In general, every item or asset that the decedent held an interest in becomes part of his gross estate. Therefore, the tax is imposed on all of his assets. In particular, the federal estate tax is imposed on the following types of property: personal property, business assets, and investments. Personal property includes such items as primary homes, vacation homes, motor vehicles, boats, furniture, paintings, and similar types of items. Business assets include business buildings, land, machinery, inventory, and other business assets. Investments include such items as bonds, stocks, and life insurance.

What Percentage Does the Federal Estate Tax Impose?

Although it was slated to drop to 0% for 2010, the Federal Estate Tax is currently set at 45% as determined by the budget plans set by President Obama. This means that anything over the initial $3.5 million dollars inherited from a deceased person is taxed at 45%. For a married couple this value increases to $7 million. In the past, this percentage had been set at 55%, but the amount that could be inherited tax free had been set at $2 million during 2006 to 2008. Unfortunately, due to the current state of the economy, the Federal Estate Tax is not going to be repealed or decreased.

What Is an Inheritance Tax?

The inheritance tax, a state tax, is imposed upon the individual who has the privilege of being the heir to the property or assets of a deceased individual. Only a handful of states currently exercise the right to impose this tax. These states include: Pennsylvania, New Jersey, Nebraska, Maryland, Kentucky, Iowa, and Indiana. Each state has its own set of guidelines regarding the inheritance tax and the percentages charged.

It is interesting to note that while Oregon and Tennessee label their tax as an inheritance tax, it actually follows the guidelines of an estate tax. Hence, they are not included in this list since that tax collects upon the value of the property being transferred rather than on the individual who inherits the property.

What Is an Estate Tax?

An estate tax is imposed by either the federal or the state government. It is enforced upon the right to transfer the property of a deceased person upon the heirs of the estate. A number of states also charge an estate tax that is in addition to the federal estate tax. These states include: Washington, Vermont, Tennessee, Rhode Island, Oregon, Oklahoma, Ohio, North Carolina, New York, New Jersey, Minnesota, Massachusetts, Maryland, Maine, Kansas, Illinois, Delaware, and Connecticut.
About Author Lorabella :

For more information about arv and testament, please visit <a href="" target="_blank"></a>

Article Source:
Article Url:

Article Added on Monday, August 10, 2009
Other Articles by Lorabella

A Last Will and Testament is Your Key to Proper Estate Planning
Many people know that they should develop an estate plan to protect themselves and their property. Yet many of those same people have not even taken the time to create a last will and testament. If you need to protect your property from taxes and legal problems with an estate plan it is absolutely essential to first create a solid last will and testament. Without a last will and testament in place the loved ones you leave behind could be left to the mercy of the state and the court system. As...

Why Preparing Your Last Will and Testament at Tax Time Makes So Much Sense
If there is anything more daunting than doing your taxes it is making out your last will and testament. While tax season only forces you to face the fragility of your finances, the creation of a last will and testament forces you to face the fragility of your life. Given the unpleasantness of the task it is no wonder so many of us put off creating our wills until it is too late, leaving our family members to pick up the pieces and try to sort out the family finances as best they can. That is...

How to Discuss a Final Will and Testament With Your Parents
There are few things in life as unpleasant as discussing death and dying, and perhaps that is why so few of us take the time to create a last will and testament. The creation of a final will and testament requires family members to come face to face with their own mortality, and this is certainly not something most people want to think about. Even when a family member has experienced a serious health problem there may still be a reluctance to make out a will, but it is important to overcome...

What is a Last Will and Testament and Why Do I Need One
Many people are under the mistaken impression that a will is unnecessary for those who do not have significant assets to protect, but the truth is that everyone should have a valid will in place. No matter how much or how little you have in the way of assets it is important to provide protection for those assets and for those you will leave behind. Each of us have people that we care about, whether they be family members or trusted friends, and having a last will and testament in place can...

Last Wills and Testament Should You Write Your Own
Should you write your own last will and testament? After all, there are so many online applications, computer software programs, preprinted forms, obliging friends, and helpful books available today that it almost seems foolish not to do so. Nonetheless, it is important to consider the repercussions of not creating a will using the services of an estate planner or attorney. Several reasons not to do so are prominent among those that exist. If You’ve Seen One Estate, You’ve Seen Them...

Does a Last Will and Testament Transfer to Another State
What happens when an individual creates a last will and testament in one state and moves to another one? Does her last will and testament transfer to the state that she has moved to? The answer to this question actually depends on several different facets. Transferring a Last Will and Testament: The Validity of the Will In general, if the last will and testament was valid in the first state, then it will be valid in the second state. However, it must have followed each one of the guidelines...

Last Will and Testament What Does the Executor of the Estate Do
The executor of an estate, also referred to as the personal representative of the estate, is chosen by the testator or creator of the last will and testament. The chosen individual is responsible for a wide number of services for which he is typically paid a fee or given a bequest in lieu of a fee. If a fee is involved, it is typically determined by the laws of the state of residence of the testator, the testator’s decision, or a decision made by the beneficiaries of the estate. The services...

The Many Advantages of Having a Will
Creating a last will and testament is one of those tasks we know we should do but keep putting off. The reasons behind this reluctance are obvious – after all none of us yearns to face our own mortality, and making out a will is certainly not a pleasant task. Even so it is important for each individual to take the time to create a final will and testament. This important document is vital to protecting your family and your assets in the event of an untimely death. Creating a will is absolutely...

Last Will and Testament What Does the Personal Representative Get
The personal representative is also referred to as the executor of the estate. She is usually appointed by the testator or creator of the will. While the personal representative does receive financial compensation for her services, this amount varies from one state to another as well as being dependent upon the circumstances. Is There a Last Will and Testament? If a last will and testament exists, then it should be checked to see what it indicates for the personal representative’s fee. It...

Thinking Of Creating A Last Will And Testament Prepare Carefully
Most of us know that we should take the time to prepare a last will and testament, but all too few of us actually get around to creating this important legal document. The reasons for this procrastination are many. Sometimes young people may feel that they are invulnerable and therefore do not need a will. Young workers may feel that they have not yet accumulated enough assets to warrant a formal will. And many older people may put off the creation of a last will and testament because the...

Click here to see More Articles by Lorabella
Publishers / Webmasters
Article ID: 153903
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:

246 Users Online!!
Related Articles:
Latest Articles:
Legal >> Top 50 Articles on Legal
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts

Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of and/or its owners.

Copyright © AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Personal eMail Provided By AwareIndia

Company IDS