Residents of other states who want to avoid estate taxes may find that moving to California, which imposes no such tax, upon retirement is a way to preserve their financial legacy for their heirs.
Couples in California with considerable assets may be looking to take advantage of the federal estate tax exemption that allows currently allows each person in a married couple a $5.43 million exemption.
California residents going through the estate planning process may not be aware of how gift taxes can affect them. The federal gift tax and the federal estate tax are intrinsically linked.
In states like California where real estate valuations tend to run high and also inflate rapidly, it is especially important to be aware of estate tax laws and keep up with changes to them.
Local residents may benefit from learning more about estate taxes, as described by the Superior Court of California. The personal representative of the estate is typically responsible for paying taxes to the appropriate state and federal agencies for the decedent.
A recent ruling from the U.S. Court of Appeals for the 5th Circuit granted a family $14.4 million estate tax refund. The court ruled that a 47.5 percent discount should have been applied to the value of the family's art collection for estate tax purposes.
No one wants their spouse or family members to have to worry about what to do when they pass away. However, many people do not realize that the estate is required to pay taxes on property above the exemption limit that is transferred.