Linda's Guide to Leaving a Legacy
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Linda’s Guide to Leaving a Legacy
By Linda Sommers, Attorney at Law
303.984.9900
[email protected] www.ColoradoEstatePlanning.org
Tax SeaSon ISSueS
During tax season, it is good to remember the consequences of gifting during your lifetime and after death. An inheritance tax is a tax levied on people who inherit property or money. Colorado does not have an inheritance tax, however if you inherit from someone who lived in a state that does have an inheritance tax you may get a bill from that state. Nebraska, Iowa, New York and Oregon are among the fifteen states that currently impose a state inheritance tax. Inheritance taxes are levied on the transfer of assets to heirs, based on the relationship of the inheritor to the deceased; spouses, children, or siblings often have different exemptions. There is a federal estate tax, however, right now an individual can leave up to $5.45 million to heirs and pay no federal estate or gift tax using their lifetime exemption. Beneficiaries don’t usually pay income tax on inherited assets unless the asset is a qualified asset, usually in the form of an inherited retirement account, on which income taxes are due when assets are withdrawn. A gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The donor is usually responsible for the gift tax. There is an annual exclusion for gift taxes; this year you can gift up to $14,000 to as many individuals as you like without incurring a gift tax. A husband and wife can each make separate $14,000 gifts. The tax code is an ever-changing set of laws and I recommend you use a professional to ensure you are armed with the newest and best information. Come to our FRee estate Planning 101 class to learn more. Thursday april 20- Standley Lake Library 3:00 p.m.; or Thursday april 27- Highlands Ranch Library 3:30 p.m. Find and Like us on Facebook @SommersLawGroupLLC
Linda’s Guide to Leaving a Legacy
By Linda Sommers, Attorney at Law
303.984.9900
[email protected] www.ColoradoEstatePlanning.org
Tax SeaSon ISSueS
During tax season, it is good to remember the consequences of gifting during your lifetime and after death. An inheritance tax is a tax levied on people who inherit property or money. Colorado does not have an inheritance tax, however if you inherit from someone who lived in a state that does have an inheritance tax you may get a bill from that state. Nebraska, Iowa, New York and Oregon are among the fifteen states that currently impose a state inheritance tax. Inheritance taxes are levied on the transfer of assets to heirs, based on the relationship of the inheritor to the deceased; spouses, children, or siblings often have different exemptions. There is a federal estate tax, however, right now an individual can leave up to $5.45 million to heirs and pay no federal estate or gift tax using their lifetime exemption. Beneficiaries don’t usually pay income tax on inherited assets unless the asset is a qualified asset, usually in the form of an inherited retirement account, on which income taxes are due when assets are withdrawn. A gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The donor is usually responsible for the gift tax. There is an annual exclusion for gift taxes; this year you can gift up to $14,000 to as many individuals as you like without incurring a gift tax. A husband and wife can each make separate $14,000 gifts. The tax code is an ever-changing set of laws and I recommend you use a professional to ensure you are armed with the newest and best information. Come to our FRee estate Planning 101 class to learn more. Thursday april 20- Standley Lake Library 3:00 p.m.; or Thursday april 27- Highlands Ranch Library 3:30 p.m. Find and Like us on Facebook @SommersLawGroupLLC
