September 23, 2011

How to Avoid Inheritance Tax

Inheritance tax is also known as estate tax and was designed to only affect the very wealthy tax payers. This has since changed to affect a lot more individuals as things such as inflation have increased but the inheritance tax amount has not changed all that much.

If you are subject to paying inheritance tax there are definitely some ways to avoid paying inheritance tax.

 

  • The first and easiest way is to leave your estate to your family members in smaller individual amounts, rather than leaving it all to one person. This will take some pre-planning on your part but could save your family some big bucks.

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  • You may also leave your entire estate to your spouse which will avoid all inheritance tax but they will need to make sure they divide everything up equally when the time comes.

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  • Charitable donations, large wedding gifts to family members, and small gifts to a large number of people will also help you avoid having inheritance tax on your estate.

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    Stocks

    If you own stocks and wish to avoid tax on those as well you will need to get an inheritance tax waiver. This waiver will allow these stocks to be easily transferred to avoid paying inheritance tax on these stocks. This means that these stocks can be transferred to anyone else and the person receiving these stocks will be responsible for paying the tax on these stocks.

    To learn more about How to Avoid Inheritance Tax, visit TurboTax Online.

    * Filed by neville1way at 2:33 pm under Uncategorized
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