Free Article: Financial
You are here:
Directory | Finance |
What Is Estate Tax?
By Myles Johnstone
Estate tax differs from income tax in that income tax is owed every year on any incoming revenue. Estate tax is owed on the net value of your estate (if that estate is above a certain value) at the time of your death if you leave your assets to any beneficiary other than your spouse.
Essentially your estate is made up of everything you own: life insurance proceeds, your IRA, your cars, your jewelry, etc., less any debts you may owe on that property. If your home is worth $200,000 but you still owe $95,000 on your mortgage, only $105,000 would be included in your net estate from that property.
How much can you pass on to beneficiaries before estate tax is owed? Currently, you can give or bequeath $600,000 to your beneficiaries free of gift or estate tax. Any amount over that and your beneficiaries will pay dearly.
Author Details:
Myles Johnstone writes exclusively for finance related sites such as Refinancing Finance Info.com, Vehicle Finance Info.com and finance Solutions info.com
Source: Financial Articles
NOTE: This article may be reproduced ONLY if this note, the author details, source and ALL links remain in place and active.
Articles About Finance:
3 Drawbacks Of Having A Company Monitor Your Credit
4 Reasons Why Real Estate Is A Good Investment
5 Questions To Ask A Financial Planner
5 Simple Ways To Save More Money
6 Rules To Building Wealth And Satisfaction In Life
A Couple's Guide To Following A Budget
Amazing Opportunities Now And In The Future
Are You Financially Insane
Do You Sacrifice Integrity For Short Term Financial Gains
Does The Lack Of FDIC Insurance Make Money Market Funds A Bad Choice
Effective Ways To Reduce Your Federal Income Taxes - Part 1
Effective Ways To Reduce Your Federal Income Taxes - Part 2
Financial Success Through Personal Hard Work
Getting the Pay You Deserve
How To Become A Smart Borrower - Part 1
How To Become A Smart Borrower - Part 2
How To Invest Wisely
Into Mutual Funds - Be Sure To Diversify
Investing In Your Own Business
Minimizing Taxes On Funds
Planning For Retirement
Preparing For Your Children's College Education
Resisting Temptation To Spend Your Money
Simple Ways To Increase Your Savings - Part 1
Simple Ways To Increase Your Savings - Part 2
The Importance of Saving
Two Keys To A More Successful Career
What Is A Mutual Fund
Which Is Financially Easier - Renting Or Buying
Your 1st Step To Financial Freedom - Putting All Of Your Debts In Writing
A few more small articles about finance matters:
3 Rules That Debt Collection Agencys Must Follow
Credit Monitoring Services
Everybody Can Find Money To Invest
Marshmallows, Resisting Temptation, and a Satisfying Life
Need More Money - Then What Are You Doing About It
The Truth About Medicare - Will It Cover You When You Need It
What Are Dividend Reinvestment Plans
What are savings and money market accounts
What Do You Want From Your Money
What Is Estate Tax
What Is My Bank Account Really For
What To Do If You're Already A Victim Of Financial Fraud
See also: Credit Repair