Inheritance taxes explained
By Jakob Jelling
Reduce inheritance taxes by giving gifts!
The inheritance tax is the same thing as the estate tax in the United States, but with a different name depending on the country that you are talking about. The inheritance tax is a tax that is supposed to be levied on the richest people after they die, especially if they have a considerably large estate at that point in time. However, this is not always the case, and in fact, a lot of people find that they are being forced to pay an inheritance tax even though they do not have a particularly large estate. The reason for this is that housing costs continue to increase - and since your house is considered to be one of your assets, it is included in your estate.
The inheritance tax is considered by some people to be a highly unfair tax due to the fact that the people who owned the estate had already paid their taxes before death. However, the inheritance tax is still in effect, and it can cost anywhere between forty and fifty percent of your estate over a certain maximum amount. Depending on where you are, that amount will change. Essentially, anybody who has more than that base amount in their estate will be charged 40-50% of any assets that they owned over that amount.
One thing that you can do in order to reduce the amount of inheritance tax you end up paying is to check and see if there are any loopholes in the tax law that you can use to your own advantage. One thing that you should consider, for instance, is that some countries will allow you to give a large amount of money to a family member or survivor tax free. If there is anybody who you would like to have inherit a large monetary gift, then you should definitely consider doing this before you die.
This might even reduce the total amount of your estate to the point where you will not have to pay any inheritance taxes at all. This also goes for gifts. It is possible to give gifts to as many people as you would like before you die, just so long as the total value of each gift does not exceed a certain amount.
By planning ahead and making gifts, you should be able to reduce the amount of inheritance taxes that your estate will owe after your death.
About the Author
Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.
Article Source: http://www.simplysearch4it.com/article/19872.html
|If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/19872.html" as shown above and make it hyperlinked.|
| Some other articles by Jakob Jelling|
|Mixing and pouring concrete|
Mixing and pouring concrete often sounds easier than it is. This task implies handling the right amount of ingredients and handling them at the right moment ...
How to repair cracked vinyl siding
Although vinyl siding has many advantages over wood and does not wear as easily, sometimes it can be cracked and might have to be replaced. Extreme weather conditions, such as strong winds, can even ...
How to install replacement windows
Replacement windows can be a great choice when needing new windows and wishing to be able to replace them easily. Replacement windows are created and designed in such a ...
How to install an under-the-sink water filter
Installing a water filter can be very important, especially in those cases where water has more chlorine or minerals than we might wish, or when we simply want to make sure ...
How to install a ceiling fan
A ceiling fan can be a great choice for acclimatizing an environment, especially when the space is reduced, but installing it can be difficult and tricky. If you have a ceiling fan that brings instructions for you ...
How to replace a windowsill
Replacing a windowsill can be easier than it seems, you might only need to count with the necessary tools and follow several steps. We will provide you with some useful tips through the next few ...