If there are two constants in life, they are death and taxes. Even in death, there is an estate tax that may apply to things you leave behind. After all, as the old adage goes, you can’t take it with you. While this may be true, why would you want to leave money for Uncle Sam?
There may be more than six months to go before tax returns must be filed in April 2017, but it appears that battle lines are being drawn on how some wealthy, family business owners may reduce their estate taxes.
If you are chosen to be an executor for an estate, it is largely a great honor. However, there are a number of responsibilities to be undertaken with regard to a deceased’s property. Part of that is handling (or hiring someone to handle) the administration of the estate. One of the questions that will come up for executors is whether some of their expenses in handling the estate are tax deductible. Also, executors may wonder if certain expenses may reduce the estate’s overall value for tax purposes.
Through a number of our posts we have addressed tax issues for individuals, there are some people who may encounter tax questions (and issues) that have nothing to do with their individual incomes. A perfect example of this class of tax questions involves taxes that can possibly be assessed to a deceased person’s estate.
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.