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Estate Tax in Raleigh Probate Cases

Many people wish to transfer property to their loved ones when they pass away. Unfortunately, the government can use this transfer as a way to levy taxes. Although North Carolina no longer recognizes this tax, estates of a certain value may still need to pay money to the federal government. Understanding the role of the estate tax in Raleigh probate cases is essential to protect the value of your property for your heirs. A skilled attorney could help you craft an estate plan utilizing trusts and other tools that minimizes the impact of these payments or avoids them altogether.

State Estate Taxes in Raleigh

Under some state laws, the government may levy a tax as a percentage of an estate’s value. This tax applies whenever an estate moves into the probate process and could result in a significant reduction in value. Thankfully, North Carolina repealed this law on July 23, 2013. This means that people may plan their estates without regard for the state’s tax office.

Federal Estate Taxes for Raleigh Estates

While the State will never seize a portion of a Raleigh resident’s estate, the federal government is a different matter. Although the estate tax is a highly politicized issue, the fact remains that the IRS will levy a tax on estates of a certain value. As such, it is critical to enlist the help of a skilled local attorney to properly evaluate an estate and determine whether it will need to pay a portion to the IRS. Currently, the Internal Revenue Ser vice  will tax a percentage of any estate with a value of at least $11,700,000. As many estates take a significant portion of their value due to life insurance payments or property values, it is crucial to protect these assets from taxation through creative estate planning.

Trusts to Avoid Federal Estate Taxes

One option is to place property into a Trust. Once property goes into a Trust, it no longer belongs to the individual and therefore cannot be taxed as a part of their estate. A Trust allows the property to be transferred to another party without going through the probate process and can help lower the total value of a person’s estate to avoid federal taxes. An attorney in Raleigh could work to craft estate plans that help to minimize the impact of the federal estate tax through the use of a Trust.

Call a Raleigh Attorney to Discuss the Estate Tax in Probate Cases

While the state no longer has an estate tax, the federal government retains this means of gathering funds from a decedent’s assets. Limiting the value of your estate is one way to avoid the payment of these taxes and protect the financial future of your heirs. A popular way to achieve this goal is to place property into a Trust. This step means that the property is no longer an asset of a Trust maker and can transfer to a beneficiary tax-free. To learn more about the estate tax in Raleigh probate cases, contact the knowledgeable attorneys at our firm today.