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Post by anitya on Jul 21, 2021 21:28:07 GMT
Norbert’s example of Washington State is a good reminder to consider State tax in Estate tax matters.
I am guessing Florida must not have a punitive Estate Tax because it is a popular destination for retirees.
My attitude is as a retiree live in a State that has an exemption at least close to the Federal exemption and keep giving donations and gifts while alive so I can see how the money is being used or I can create incentives for behavior that is long term good for the donee. Giving donations and gifts while alive can also keep the size of the Estate below the exemption level. One important thing to keep in mind is not to have regrets / attachments to the money donated as there is always a possibility the intended behavior from a donee may not materialize. Treat it like investment activity.
Edit: As Norbert alluded to make sure to explore both Estate Tax and Inheritance Tax. I am using “Estate Tax” to mean both.
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Post by Capital on Jul 21, 2021 22:16:56 GMT
Norbert’s example of Washington State is a good reminder to consider State tax in Estate tax matters. I am guessing Florida must not have a punitive Estate Tax because it is a popular destination for retirees. My attitude is as a retiree live in a State that has an exemption at least close to the Federal exemption and keep giving donations and gifts while alive so I can see how the money is being used or I can create incentives for behavior that is long term good for the donee. Giving donations and gifts while alive can also keep the size of the Estate below the exemption level. One important thing to keep in mind is not to have regrets / attachments to the money donated as there is always a possibility the intended behavior from a donee may not materialize. Treat it like investment activity. Edit: As Norbert alluded to make sure to explore both Estate Tax and Inheritance Tax. I am using “Estate Tax” to mean both. The Florida Estate tax was based upon the Federal State Estate Tax Credit. Effective 01/01/2005 the Federal State Estate Tax Credit was changed to a deduction. For that reason there is no Florida Estate Tax; however, the statute is still on thebooks and the Executor must file some paperwork in order for the automatic Florida Estate Tax Lien to be removed. Tennessee never had an Estate Tax; but, it did have an Inheritance Tax. Tennessee repealed this tax and removed it from the statutes. Tennessee no longer has and income tax, an estate tax, or an inheritance tax.
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Post by retiredat48 on Jul 22, 2021 17:11:27 GMT
Norbert’s example of Washington State is a good reminder to consider State tax in Estate tax matters. I am guessing Florida must not have a punitive Estate Tax because it is a popular destination for retirees. My attitude is as a retiree live in a State that has an exemption at least close to the Federal exemption and keep giving donations and gifts while alive so I can see how the money is being used or I can create incentives for behavior that is long term good for the donee. Giving donations and gifts while alive can also keep the size of the Estate below the exemption level. One important thing to keep in mind is not to have regrets / attachments to the money donated as there is always a possibility the intended behavior from a donee may not materialize. Treat it like investment activity. Edit: As Norbert alluded to make sure to explore both Estate Tax and Inheritance Tax. I am using “Estate Tax” to mean both. The Florida Estate tax was based upon the Federal State Estate Tax Credit. Effective 01/01/2005 the Federal State Estate Tax Credit was changed to a deduction. For that reason there is no Florida Estate Tax; however, the statute is still on thebooks and the Executor must file some paperwork in order for the automatic Florida Estate Tax Lien to be removed. Tennessee never had an Estate Tax; but, it did have an Inheritance Tax. Tennessee repealed this tax and removed it from the statutes. Tennessee no longer has and income tax, an estate tax, or an inheritance tax. Hi cap... Partly why Tennessee is one of the top States to which people are moving!! R48
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Post by fishingrod on Jul 24, 2021 23:13:55 GMT
Just a reminder, Any TOD or POD, or beneficiary designation on a 401K, or IRA, Life insurance, Annuity etc. will almost always OVERRIDE any Will or Trust wishes or designations. So make sure they match. A "property" that is owned out of the State of residence at time of death, not titled in the name of a Trust or at least TOD on Title, could prompt a probate of the estate or at least that property. It really is a game of check your P's and Q's. And then double check again.
** Also don't forget to name alternate beneficiaries in the event, one or even two pass away. If not it could throw the Estate into probate, there being no surviving beneficiaries.
Fishingrod
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Post by fishingrod on Jul 24, 2021 23:40:54 GMT
And, Of course none of this avoids the possible Estate tax that may be in effect when you pass away. Other Trusts are designed to help with taxes but not what has been mentioned.
I wish I had a small Island I could sell you to establish a private domain. Maybe we could go halves?
Fishingrod
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