Depending on the size of your estate, as well as your marital situation, it may be possible that you will be hit with
a large estate tax bill upon death.
But if you made the $ 14 million in bequests via your will, the money would be part of your taxable estate and, depending on when you died, might trigger
a large estate tax bill.
Failing to elect portability is a common mistake that could result in
a larger estate tax bill after the death of the second spouse.
Not exact matches
Another feature of the Senate
bill would be to make changes to the
estate tax, a levy placed only on very
large estates when they're inherited from their deceased owner.
The House
bill would immediately double the exemption on the
estate tax, a levy of up to 40 percent for very
large estates when their holder dies, and after six years repeal it entirely.
If you've accumulated a
large estate, life insurance can help foot the
estate -
tax bill from Uncle Sam, preserving assets for your heirs.
According to Marshall, Parker, & Weber, LLC, a law firm in Pennsylvania that specializes in elder law and
estate planning, the couple is allowed to spend their money «to pay off existing debts» to prepay real
estate taxes, insurance, or other
large bills; or to prepay funeral expenses» before qualifying for Medicaid.
These types of policies are most common for
estate planning purposes where after both insureds pass, immediate cash is needed to settle an
estate or mitigate
larger tax bills due to
estate tax laws.
The proceeds of a
large life insurance policy can be used by the heirs to pay a
tax bill for those wealthy individuals whose
estate surpasses the
estate tax exempt threshold.
If you're like a lot of real
estate professionals who made a significantly
larger amount of money in 2013 than they did in 2012, prepare yourself for a bit of a shock when it comes to your
tax bill.
Utility
bills are usually
larger than either real
estate taxes or homeowners insurance, but they are currently ignored in mortgage underwriting.