Estate tax is a concept that s slowly being phased out in many countries. Emphasis on many but it s still around, and it s important to know what will happen to a person s assets when they die. If there s no will to govern or dictate what should happen to them, they re most likely governed by the state, if there is a will however, it is executed based on the guidelines set out in it. Therefore, it s of importance to consult retirement advising Northern Virginia on such matters, especially if a person seeks to leave a large sum of money as an inheritance for heirs or beneficiaries that will be left behind.
This kind of tax differs from country to country. In South africa for example, no money obtained through an inheritance is taxed but estate duty tax, which is the tax charged for the transfer of assets from the deceased to the beneficiaries is charged at 25% for any amount north of R30 million.
This is where the need of an estate tax expert comes into play. Estate tax experts or executors are advisable for any individuals/persons who would like to leave behind considerably large sums of money/assets to their heirs or beneficiaries when they pass on. Their role is not only to ensure that people that are able to leave behind such a considerable amount of money comply with the law but estate tax in itself can be quite high, especially when the sum of money left behind is significant. It should require careful planning in order to find a solution that makes all parties involved happy.
It s also good to make note of the fact that heirs or beneficiaries are taxed on the inheritance they received and how much they receive. Exceptions are made for certain ways people inherit money. For example. If the money inherited comes from a spouse and children who inherit money from their parents are exempt from inheritance tax. But in other cases the exemption is dependant on the relationship the beneficiaries had with the deceased.
Choosing the right executor is important while your still alive as they will be the one making all of the decisions once you re no longer around. It s common place to ask a very close friend, parent or child member to become the executor of your estate when you die. And there is nothing wrong with that, and for some people would prefer an independent entity like an attorney. Whomever is chosen, ensure that they are prepared. Be it through hiring a lawyer or an accountant to assist with the execution of your will. This not only minimises the chances of things going wrong, but decreases a chance for family squabbles to happen over your estate.
Once an expert of your choice has been found and willing, supply them with a letter of your intentions and that you would like them to be in charge of your will and estate. It would be a good idea to provide a mention of a successor, (if present) in case they would like to resign or something befalls them.
The letter should stipulate what should be executed such as who inherits the assets and estate you own, along with the responsibilities the expert you have chosen must oblige by like the paying off of all debts and paying off all taxes. Hiring a lawyer or an accountant could be of advantage but not mandatory.
Having a will is one thing, finding beneficiaries is another but something as important as your estate is finding someone to execute your wishes in the way they were intended before death.
This kind of tax differs from country to country. In South africa for example, no money obtained through an inheritance is taxed but estate duty tax, which is the tax charged for the transfer of assets from the deceased to the beneficiaries is charged at 25% for any amount north of R30 million.
This is where the need of an estate tax expert comes into play. Estate tax experts or executors are advisable for any individuals/persons who would like to leave behind considerably large sums of money/assets to their heirs or beneficiaries when they pass on. Their role is not only to ensure that people that are able to leave behind such a considerable amount of money comply with the law but estate tax in itself can be quite high, especially when the sum of money left behind is significant. It should require careful planning in order to find a solution that makes all parties involved happy.
It s also good to make note of the fact that heirs or beneficiaries are taxed on the inheritance they received and how much they receive. Exceptions are made for certain ways people inherit money. For example. If the money inherited comes from a spouse and children who inherit money from their parents are exempt from inheritance tax. But in other cases the exemption is dependant on the relationship the beneficiaries had with the deceased.
Choosing the right executor is important while your still alive as they will be the one making all of the decisions once you re no longer around. It s common place to ask a very close friend, parent or child member to become the executor of your estate when you die. And there is nothing wrong with that, and for some people would prefer an independent entity like an attorney. Whomever is chosen, ensure that they are prepared. Be it through hiring a lawyer or an accountant to assist with the execution of your will. This not only minimises the chances of things going wrong, but decreases a chance for family squabbles to happen over your estate.
Once an expert of your choice has been found and willing, supply them with a letter of your intentions and that you would like them to be in charge of your will and estate. It would be a good idea to provide a mention of a successor, (if present) in case they would like to resign or something befalls them.
The letter should stipulate what should be executed such as who inherits the assets and estate you own, along with the responsibilities the expert you have chosen must oblige by like the paying off of all debts and paying off all taxes. Hiring a lawyer or an accountant could be of advantage but not mandatory.
Having a will is one thing, finding beneficiaries is another but something as important as your estate is finding someone to execute your wishes in the way they were intended before death.
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