Home Practice areas Media Press
Case Results Testimonials Contacts
Home Practice areas Media Press Case Results Testimonials Contacts

As seen on

We are in the ranking

Inheritance

What is Inheritance?

Inheritance is the process of receiving property, assets, or wealth after someone’s death. This can include physical items like houses, cars, and jewelry, as well as financial assets like stocks, bonds, and bank accounts. Inheritance can also include intangible assets like intellectual property, patents, and copyrights.

Types of Inheritance

There are several types of inheritance, each with its own rules and regulations. Here are some of the most common:

Intestate Succession

When someone dies without a will (known as intestate), their estate is distributed according to the laws of their state or country. This means that the court will determine who inherits their assets based on the laws in place at the time of their death.

Testate Succession

On the other hand, if someone dies with a will (known as testate), their estate is distributed according to their wishes. The will outlines who inherits what assets and in what proportions.

Community Property

Community property is a type of property ownership where assets are shared equally between spouses. When one spouse dies, the other spouse inherits half of the assets without going through probate.

Joint Tenancy

Joint tenancy is another type of property ownership where multiple individuals have equal rights to a property. When one joint tenant dies, their share passes to the remaining joint tenants automatically.

Inheritance Laws and Taxes

Inheritance laws vary from state to state and country to country. Here are some key points to keep in mind:

Federal Inheritance Tax

The United States does not have a federal inheritance tax. However, there are federal estate taxes on large estates.

State Inheritance Taxes

Some states still have inheritance taxes on certain inheritances. These taxes vary by state and can range from 1% to 20% of the inherited amount.

Estate Taxes

Estate taxes are levied on the total value of an estate before it’s distributed to heirs. These taxes can range from 18% to 40% depending on the size of the estate.

Gift Taxes

Gift taxes are levied on gifts given during an individual’s lifetime. These taxes can range from 18% to 40% depending on the size of the gift.

Capital Gains Taxes

Capital gains taxes are levied on profits made from selling inherited assets like stocks or real estate. These taxes range from 0% to 20% depending on the size of the gain.

Strategies for Minimizing Tax Liabilities

Here are some strategies for minimizing tax liabilities:

Trusts

Trusts are legal entities that hold assets for beneficiaries. Trusts can help reduce estate taxes and protect assets from creditors.

Charitable Giving

Donating to charity can help reduce estate taxes and income taxes. Many charities offer estate planning services and can help you make informed decisions about your giving.

Tax-Deferred Savings

Tax-deferred savings accounts like 401(k)s and IRAs allow you to save for retirement while reducing your taxable income.

Conclusion

Inheritance may not be a topic we like to think about, but it’s an important consideration for anyone who wants to ensure their loved ones are taken care of after they’re gone. By understanding the different types of inheritance, laws, and taxes involved, you can make informed decisions about your estate planning and minimize your tax liabilities. Remember to consult with a financial advisor or attorney to get personalized advice tailored to your specific situation.

Bukh Law P.A Inheritance legal services:

  1. Will preparation and estate planning:

    We can assist with drafting wills, trusts, and other estate planning documents to ensure your assets are distributed according to your wishes.

  2. Probate administration:

    Our experienced attorneys can guide you through the probate process, handling all necessary paperwork and court filings.

  3. Trust administration:

    We can help you set up and manage trusts for tax benefits, asset protection, or other purposes.

  4. Estate litigation:

    If a dispute arises regarding an inheritance or estate distribution, our attorneys can represent you in court to protect your rights.

  5. Inheritance disputes:

    We can help resolve disputes between family members or beneficiaries over inheritance distributions, will contests, or other issues.

  6. Beneficiary designations:

    Our lawyers can assist with updating beneficiary designations on life insurance policies, retirement accounts, and other financial assets.

  7. Tax planning:

    We can help minimize tax liabilities associated with inheritance and estate transfer by optimizing tax strategies and taking advantage of available deductions.

  8. Intestacy Laws:

    Determining the distribution of assets when someone passes away without a will, and ensuring that their property is distributed according to state laws.