What should I know about estate tax?

If you are preparing to set up your estate plan, there may be many different types of questions you have, such as determining how to divide your assets between beneficiaries. However, you should be aware of other topics that may impact your estate, such as estate tax. In Jamaica, and in other New York cities, you should try to prepare for any potential hurdles that may arise during the estate process, such as how estate tax is calculated.

According to the Internal Revenue Service, estate taxes  are placed on the transferral of property from one person to another after they pass away. Various types of property may be subjected to this tax, such as trusts, business interests, cash and real estate. When determining how to tax an estate, assets are evaluated for their fair market value, which may differ from the amount someone spent to purchase an asset.

Generally, a simple estate with modest assets may not have to file an estate tax return. That said, estates which have taxable gifts and assets in excess of $5.49 million in 2017 must file an estate tax return. If you have significant assets and surpass this threshold, then it is very important to be aware of how taxes could affect your estate and your family members after you pass away.

Fortunately, by planning ahead and having a clear understanding of the best route forward, some people are able to simplify these types of issues for their loved ones. You should also understand that this post does not represent an alternative to legal advice.