facebook pixel

How is an Estate Account Taxed?

estate taxWhen people die their estate becomes a separate legal entity that must pass through the probate process if their personal wealth has not been protected by a trust transfer before the date of their passing. While many people are prepared for this eventuality, others who die unexpectedly will often face this taxation dilemma with their heirs when their property is transferred. The best element of dealing with this tax debt is that the federal law was the subject of much discussion in the recent past and the exemption amount was raised significantly in 2017. The new exemption rate of $5.49 million means that the number of families that must deal with this issue has been greatly reduced. Luckily, some states like Wisconsin do not levy estate taxes, but calculating the amount of federal tax debt can still be a complicated matter requiring the expertise of Waukesha County WI estate attorneys like the professionals at McLario Helm Bertling & Spiegel.

Income Classification

Some estates are taxed on the amount of funds being transferred along with any income that has been generated with the wealth. The rate of income tax is determined by how the income was generated. Capital gains earning are assessed for the estate according to the amount of money earned from the investment holding. Income that was generated by actually working is paid according to the standard income tax rate after exemptions. The type of income matters, and having legal counsel throughout the determination process is essential for maximum tax debt savings and accurate classification.

Possible Loopholes

The federal tax code also contains many tax loopholes that can be utilized beforehand by an attorney when it is inevitable that the primary asset holder will pass on relatively soon. Being prepared is important and often vital to protecting those with considerable wealth who will obviously exceed the estate exemption amount. An experienced tax lawyer can evaluate your entire portfolio and make suggestions regarding the best method to protect your wealth from the tax collector that would be exposed in a probate process. Assets exposed in a probate are typically taxed as classified by the court.

Anyone in Wisconsin with concerns over their estate taxes after death should contact Waukesha County WI estate attorneys McLario Helm Bertling & Spiegel for comprehensive representation and maximum estate tax savings calculation.

Get Started On Your Custom Estate Plan Today
Take Our Estate Planning Quiz

Schedule Free Consultation

When you contact our Milwaukee area law firm, your case will be treated like a unique request for assistance. You are a real person with real needs and will be treated like one by our firm. Nobody has time to be passed around an office from paralegal to secretary and back.
  • Request a Phone Conference