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How do you save my parents money from estate tax after they die?
Wiki User
∙ 13y ago
Federal estate tax doesn't kick in until the estate is worth $3.5 million. State taxes vary by state, of course.
The key to avoiding estate taxes is careful planning before they die.
One way to avoid estate taxes is by setting up irrevocable life insurance trust (this has to be done at least three years in advance).
Another method is for parents to make gifts to children (each parent can give up to $13,000 a year to each child) in advance.
A third method is to set up an elaborate scheme called a "Crummey Trust". This requires lawyers and Accountants who specialize in this sort of thing.
Wiki User
∙ 13y ago
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What happens if you die and owe the IRS money?
One of the primary reasons to open an estate is to resolve such issues, including taxes. The estate has to pay off the debts. If the estate cannot do so, they distribute as best they can. If the court approves the distribution, the debts are ended.
What age does federal taxes stop?
Where I live the executor of your estate will have to file your Federal taxes after you die.
Is the inheritance tax going to change in 2010?
I assume you mean the estate tax, not the inheritance tax. (There is a federal estate tax, but no federal inheritance tax.) The federal estate tax will be abolished in 2010. And (unless the law is changed) it will be reinstated in 2011 and the exclusion amount will drop from the $3.5 million in 2009 to $1 million in 2011. Note that this does not apply to state estate or inheritance taxes. Because of the craziness on the federal level, many states have been revising their estate taxes to decouple them from federal changes. ***Caution*** Before making any plans to die in 2010 in order to take advantage of the estate tax repeal, be aware that this situation is very fluid and the law could be changed.
How long can a company pursue you for an out standing debit?
A company can continue to collect from you indefinitely. As in, when you die, if you owe them money, they can collect from the executor of your estate, and get part of your life insurance policy. The best thing to do is to contact that company, and work out some kind of payment schedule with them, perhaps get them to work with you on lowering the interest rate, or disregarding any fees you may have accrued (ie: late fees, over-limit fees, etc)
What amount can I give to my children per year that is tax free?
== == There is no "income tax" on gifts in the USA, so you can give any amount you want. However, when you die, the estate taxes owed will be increased by the amount by which you exceeded your life-time gift tax exemption (gave away too much, currently well over a million dollars), not including the annual exclusion, per person, which is presently around $11,000. You can give up to $11,000 per child (or to anyone else) per year. If you are married, your spouse can do the same thus increasing the annual gift to $22,000 to that same person. Beyond that amount, your estate will be responsible for the taxes, if you're lucky enough to die with a taxable estate and gave non-exempt gifts over a million dollars. The amount changes from time to time, so check with your accountant or estate planner.
What happens if parents die and owe money to the government but the estate has no money?
The government is not going to get their money. They will have to be satisfied that there are no assets in the estate and that no one else got paid.
What is Obama worth money wise?
She is a child and not worth any money. Her parents have whatever they have gained. Children don't have a interest in the parents estate until the parents die.
What is malia Obama worth money wise?
She is a child and not worth any money. Her parents have whatever they have gained. Children don't have a interest in the parents estate until the parents die.
If both parents die who is responsible for the debt?
The estate.
What if you owed your parents money and they die and other children want to collect?
The estate has the right to collect. If there is documentation, they may offset the loan against your inheritance.
Are you required to notify the mortgage company when your parents die?
The estate is
Will the debt of the parents have to be paid by the children when they die?
The debts of the parents are paid by the parent's estate, not their children.
Who will be the executor of the estate if both parents die and there is no will?
Whomever the probate court appoints.
If you owe your parents money but mom died and dad is in a nursing home can you just have the money subtracted from your inheritance or must you pay it to the estate now?
The specifics will depend on the executor of the estate. If when the parent's die there are not adequate assets to settle the debts, the loan will probably have to be repaid. If there is enough to cover the debts, the loan can be subtracted from the bequest.
You owe money if you die is the debt over?
No the debt passes on the the heirs of the estate.
If you owe someone money and they die do you owe the money to their estate?
yes you do, but maybe the heirs will forgive the loan that was made.
Can a foster child get an estate after their foster parents die?
A foster child have no birth right after their foster parents so it's only if they are mentioned in the will.
