"Will My Child's Inheritance Be Taxed?"
This question ways heavily on the minds of people in the process of planning their estates. As experienced probated administration attorneys, those of us here at the Law Offices of Phillips, McElyea, Carpenter, & Welch, P.C. are here to help. In this blog post, we will help clarify some of the questions you may have surrounding the taxation and expenses your heirs will be subject to.
Estate/Inheritance Tax
Let's start off with the good news! There are two types of taxation total estates can be subject to: estate tax and inheritance tax. Estate tax is levied against the total value of the estate and is paid before the estate is transferred to the heirs. Inheritance tax is applied to the assets actually given to the heirs and is paid by the heirs once the inheritance is in their possession. The good news is that estate tax is only levied on estates whose total value exceeds $5 million, and that the state of Missouri does not currently have an inheritance or estate tax. Unless you are leaving more than $5,000,000 worth in money, bonds, property, and other assets behind, your children's inheritance will not be taxed.
Expenses when a Loved One Passes
While your children may not have to pay taxes on their inheritance, they may be required to cover several surprise costs after you pass. Most people don't think about it, but there are lot of expenses surviving family members must cover when a loved one passes, including (but not limited to):- The casket
- Transportation of the body
- Burial/cremation services
- The obituary for the paper
- Hiring a lawyer and accountant to gather and distribute assets and oppose claims against your estate
Conclusion
Estate taxes only apply to estates whose value exceeds $5 million, but the other expenses associated with the passing of a loved one apply to everyone. As you plan your estate, it's important to set aside some funds to help your family cover the costs after you pass. We would be happy to help you sort everything out in advance so that you - and your family! - can live worry-free.
If you have questions, please don't hesitate to give us a call! Our lawyers are well experienced with estate planning and probate administration at the Lake of the Ozarks, and we would be happy to help you plan for your children's future. It's a tough subject that no one wants to talk about, but it's a crucial step in your planning process. We would be honored to work with you.
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Disclaimer: No attorney-client relationship is created by publication of this Blog.
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Law Offices of Phillips, McElyea, Carpenter, & Welch, P.C.
The choice of a lawyer is an important decision and should not be based solely on advertising. When you need a knowledgeable attorney, we invite you to contact us to set up a consultation. Evening and weekend appointments are available. We have access to interpreters.
We Are Effective Camden County Lawyers for all of your legal needs.
We Are There When You Need Us.
Disclaimer: No attorney-client relationship is created by publication of this Blog.
---------------------------------------------------------------
Law Offices of Phillips, McElyea, Carpenter, & Welch, P.C.
The choice of a lawyer is an important decision and should not be based solely on advertising. When you need a knowledgeable attorney, we invite you to contact us to set up a consultation. Evening and weekend appointments are available. We have access to interpreters.
We accept Visa, MasterCard, and Discover.
85 Court Circle N.W., P.O. Box 559
Camdenton, MO 65020 GET A MAP
(573) 346-7231 - Telephone
(888) 236-2485 - Toll Free
(573) 346-4411 - Fax
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