Mark Glendon

What are Estate Taxes?

When someone passes away, the assets they leave behind, including real estate, bank accounts and other things of value, are counted as the decedent's estate. Estate taxes are taxes levied on the estate upon death in certain situations where the assets of the estate are transferred to heirs or certain other entities. Plan your legacy with confidence. Click here to consult a Long Island attorney for estate planning.

The amount of estate tax varies based on the size of the estate and the date of death. Estate tax exemptions have steadily grown over the years. In the past, estates consisting of $5 million or more were taxed, but in 2023, an estate valued at $12.92 million can be exempt from estate taxes. Estates subject to these taxes generally get taxed at a rate of 40%.

Can Estate Taxes Be Avoided?

It may be possible to avoid or reduce estate taxes in some situations. This can be beneficial if you want to make sure your loved ones or select entities receive the maximum percentage of your assets upon your passing. To remain within the law when preparing your estate to avoid or reduce estate taxes, it's generally a good idea to work with a local estate planning professional.

Why Do You Need a Local Estate Planning Service?

Although estate taxes are levied by the federal government, different states have their own tax laws. Some states also issue their own taxes on estates after a resident passes away. A local estate planning service will know both federal and state laws to help you maximize the impact your assets can have upon your passing.

You can look for a local estate planning professional on the web by including your local area in your search query. As an example, people looking for estate planning services in the area east of Manhattan would want to search for a Long Island attorney for estate planning. By searching for a Long Island attorney for estate planning instead of just searching for general estate planning services, you're more likely to find local professionals in the NYC area who can help you maximize your savings.

Author Resource:-

Mark writes often about estate planning. His articles may include topics like real estate closing attorney and business succession laws to help the people in needs. You can find his thoughts at estate planning tips blog.