Estate and Gift Tax - The Unified Tax System

The so-called unified tax system is comprised of three federal taxes: the (1) estate tax, (2) gift tax, and (3) generation-skipping tax. Each is implemented as part of a unified tax system. As it stands currently, estate, gift, and generation-skipping taxes appear to be here to stay. Accordingly, taxpayers should be cognizant of their many intricacies and interworkings.

Life Insurance Benefits – Are they Taxed?

Generally, life insurance death benefits paid to a named beneficiary do not subject that person to federal income tax liability. This tax advantage makes life insurance attractive for American families; parents can take comfort knowing that, upon their death, their beneficiary children will be protected financially and no portion of their policy payout will be […]

What Impact does the Probate Process have on Estate Taxes?

None at all! Upon initial glance, it appears there is a connection between probate and estate taxing; they both initiate at a testator’s death and are both based on property ownership. The two processes, however, are distinctly separate. While estate tax liability is initially based (“gross estate”) on all of one’s at-death property, the probate […]

The Estate Tax

The estate tax is a tax on at-death property transfers made by a decedent. A wide-range of property is subjected to the estate tax, whether such property is transferred with or without a will. Proponents of the estate tax believe the tax is vital to ensuring everyone has a fair shot at living the American […]