Avoiding probate involves using various estate planning techniques to eliminate assets from the legal probate process. Methods include jointly held property, living trusts, and lifetime gifting. It's important to note that avoiding probate does not exempt assets from federal estate or gift taxes.
The estate tax is a levy on the total value of a decedent's estate, including all real, tangible, and intangible property, minus any liabilities. This tax is levied by the government based on the estate's fair market value at the time of death. The amount due may be reduced by applying available credits and exemptions. Comprehensive knowledge of federal and state tax laws is necessary for accurate calculation and assessment.
A federal tax imposed on the transfer of wealth through estates and gifts, calculated based on the value of a decedent's estate and lifetime gifts.
The Marital Deduction is a provision in U.S. federal estate and gift tax laws allowing a surviving spouse to inherit the decedent's estate or receive gifts from the spouse tax-free, thereby deferring estate taxes until the property is transferred to the next generation.
