Managing Estate Taxes

If you recently inherited property from a departed loved one, one factor you shouldn’t forget to consider is the estate tax. The estate tax, or inheritance tax, is a tax imposed on the transfer of property by a deceased person to a living heir, either thru a will or according to the state laws of intestacy. If you think you can avoid this tax by giving away your property just before dying, think again. There’s the gift tax, which is imposed on the transfer of property a person gives away during his life.

The laws on Estate and Gift Taxes are considered to be some of the most complicated in the Internal Revenue Code. If you want to learn more about it, you can check out this IRS site. Additionally, we strongly recommend that you should consult with an estate tax practitioner, who is knowledgeable in this field.