Estate Tax
Understand how estate tax impacts your inheritance planning, learning key strategies to minimize obligations while preserving family wealth.
How does an estate tax affect the inheritance left to beneficiaries?
Estate tax is a levy on the estate of a deceased person before distribution to the beneficiaries. This tax can significantly reduce the value of the estate passed down, impacting the amount each beneficiary receives. To minimize the effects of estate tax, strategic planning—such as utilizing trusts—may be beneficial. Understanding state and federal tax thresholds and exemptions can further protect the estate’s value. Keeping informed about current tax laws, such as those provided by the IRS, is critical in preserving wealth for the next generation.
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