The good news: Those who are the beneficiaries of substantial estates will have to pay a little less in taxes if they inherit this year. That’s because the Internal Revenue Service raised the federal estate tax exemption in 2015, allowing very large estates to shelter $90,000 more from taxes than they did last year.
The bad news: This is just one of the laws governing the taxation of estate and compliance can be extremely complicated. There are higher tax rates for the income that estates and trusts earn, for example, but simplified regulations when a surviving spouse asks for more time to take advantage of beneficial tax rules. We strongly advise all of our clients—no matter what your income level—to consider estate planning concerns. And we can help you cut through the related tax law complexity. Contact our office today with all of your questions on estate planning or any other financial issue.