How to Avoid Inheritance Tax in 2011, 2012
64Want to Know How to Avoid Inheritance Tax?
Inheritance tax is also known as estate tax and was designed to only affect the very wealthy tax payers. This has since changed to affect a lot more individuals as things such as inflation have increased but the inheritance tax amount has not changed all that much.
If you are subject to paying inheritance tax there are definitely some ways to avoid paying inheritance tax.
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The first and easiest way is to leave your estate to your family members in smaller individual amounts, rather than leaving it all to one person. This will take some pre-planning on your part but could save your family some big bucks.
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You may also leave your entire estate to your spouse which will avoid all inheritance tax but they will need to make sure they divide everything up equally when the time comes.
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Charitable donations, large wedding gifts to family members, and small gifts to a large number of people will also help you avoid having to pay inheritance tax on your estate.
How to Avoid Paying Inheritance Tax on Stocks
If you own stocks and wish to avoid tax on those as well you will need to get an inheritance tax waiver. This waiver will allow these stocks to be easily transferred to avoid paying inheritance tax on these stocks. This means that these stocks can be transferred to anyone else and the person receiving these stocks will be responsible for paying the tax on these stocks.
See this article by TurboTax, to learn more about inheritance tax.
Federal Inheritance Tax Laws Video
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Christ! 16 months and this guy still doesn't have the time to answer these peoples' questions!?!
If I die before Dec. 31, 2010 my estate is not liable for inheritance taxes, right? (I am a 78 yr. old widow with some heart problems). But if Congress does not do anything about it as of Jan. 1, 2011 taxes will go up to over 40% when I die. Is that correct?
my great aunt has approx. 11 million in a single stock and we would like not to give 55% to sam she is 75 in good health right now we do have a 4.5m life with 208, in anual prem but i am told I will be audited and what we have been doing is using the dividend to pay for the life through me the nephew any thoughts If you whant to talk send a e-mail and I will contact you
tommy
I am 82 years old and my wife is 80. What is your best guess that congress will reinstate last years exemption of 3.5 million, starting jan.1, 2011. I am worth 1.9 million with 3 children and 5 grandchildren. If not, what is the best way to preserve the estate (by pass trust etc.)
Michelle 3 months ago
Besides the fact that a client of mine's portfolio had gone down from 2 million to 1.1 million, she wants to have a nice inheritance to leave her grandkids. She transferred 1 million into a single premium life product that will pay almost 1.4 million to her grandkids...TAX FREE! This particular product instantly gave her a 36% return, and saved up to 33% in taxes. She can now sleep at night!