Law Offices of Robert T. Leonard, APC
Free Consultations Available
Toll Free 888-408-9486
818-224-7935

Tax matters continue to arise after death

If there’s one good thing about death, it means that your no longer have to deal with what are often complex and time consuming tax matters. This does not mean that taxes related to one’s estate completely disappear however. Instead, someone left behind will have to deal with financial matters. For those whose estates meet a certain threshold, estate taxes will be an issue. 

In 2014, federal estate taxes will apply to those whose estate is worth more than $5.34 million. There is good reason why someone might try to create an estate plan that would avoid meeting that threshold. For some individuals who die, the income tax rate their final tax return is subject to is 10 percent. The federal estate tax rate is four times that, 40 percent. Being subject to the higher rate means that heirs will ultimately receive less money. While the tax rate is high, as with regular tax returns, certain expenses, such as unpaid medical expenses, might be deductible.

The decedent could have a say in who it is who deals with matters such as these. He or she may name an estate executor as a part of an estate plan. In situations where this is not done ahead of time, the probate court makes that appointment. Addressing tax issues is only part of what the individual who handles this will have to attend to.

As anyone who has completed their individual income tax returns is aware, the process can be complicated and take some time to complete. Because this activity is not something most people do on a regular basis, to make sure everything is done correctly it is usually beneficial to work with a lawyer who handles tax law.

Source: Market Watch, “Dying doesn’t make the taxman go away,” Bill Bischoff, Aug. 19, 2014

No Comments

Leave a comment
Comment Information

Send Us A Quick Message

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Law Offices of Robert T. Leonard, APC

Woodland Hills Office
21700 Oxnard Street
Suite 2060
Woodland Hills, CA 91367

Toll Free: 888-408-9486
Phone: 818-224-7935
Fax: 818-587-3833
Woodland Hills Tax Law Office

Los Angeles Office
10100 Santa Monica Blvd.
Suite 300
Los Angeles, CA 90067

Toll Free: 888-408-9486
Phone: 818-224-7935
Fax: 818-587-3833
Map & Directions

Call Today