If you have a large estate, your heirs might be on the hook for a large estate tax bill. The estate tax is a tax on property and assets that is triggered when your estate passes to your heirs. Most people don’t have to pay any estate tax, but if the estate is worth over 5.5 million if you are single and 11 million if you are married, you are going to have to pay it.
Most people have estates that are worth much less than this value and they don’t even have to worry about owing any tax on their estates at all. Only the wealthiest estates in the country have to worry about paying this tax. You will have to have your estate valued to know if you are going to be responsible for paying this tax or not.
If you do need to pay the estate tax, there are certain things you can do to reduce the amounts that you owe. Meeting with an estate attorney is a good idea as the attorney can help you go over certain things that can reduce your tax burden. In fact, there are many different loopholes you can take advantage of to get your tax burden down to almost nothing.
Keep in mind that most people won’t owe anything, so it just isn’t a concern for most people as their estates just aren’t large enough to owe any taxes. Since only the truly wealthy are taxed, most people can enjoy the full value of their estate without having to pay any tax at all on it.
The estate tax helps to fund government programs and even though 99.8 percent of households won’t need to pay the estate tax, the money that is generated is a big source of revenue and it is something that is much needed. This money can go to help everyone and the estate tax isn’t even much of a burden for the people who have to pay it.
Most countries have to pay much more money in estate taxes and the United States is very moderate when it comes to estate taxes. The tax only affects the people who are most able to pay it and it is a crucial part of the tax code. If you have to pay the estate tax, consider yourself lucky that you are worth so much money.