It sounds ominous: the death tax. A tax on when you die. And, basically, that is what it is. Currently, the death tax is 0%. That means when you die all of your assets go to your heirs without taxation, those heirs may have to pay income taxes on the money received. However, unless Congress acts today the death tax will shoot up to 60% on some people on January 1st, said a New York Estate Planning Lawyer. This means that more than half of an estate valued at over one million dollars will go to the government. While this often sounds like no big deal to many people, it often is. The average family farm is valued at over one million dollars even though those who live on it may not consider themselves wealthy (and may in fact just barely scrape by). The confusion is that most people don’t truly understand what is at stake, said a New York Estate Planning Lawyer. It isn’t just that you have one million dollars in the bank, it’s the entirety of your estate. The average person who has worked their whole life and saved, bought a decent house, and has a couple of cars and a solid retirement fund might be surprised to learn that according to the government they are considered so wealthy that they no longer have the right to determine what happens with their money, noted a New York Estate Planning Lawyer. But, that’s exactly what is happening soon. And, again, this is all money that was originally subject to the income tax. It literally is a tax on simply dying.
Planning for your future is serious business. Money is at stake, often large sums of money, and an accomplished New York Estate Planning Attorney can help.
f you or a loved one is having trouble with the tangle of tax laws, a New York Estate Attorney is ready to assist you. You want to avoid all the legal troubles that come with money, or at least make them less problematic. Your best possible ally in that endeavor is a New York Estate Attorney.