A will is a legal document outlining who will receive your accumulated wealth and assets upon your death. Wills in Texas help you distribute your wealth as you desire among those you love. After your death, if you do not plan your estate properly, your loved ones could end up having to pay hundreds of thousands of dollars in taxes upon your death.
Planning for inheritance taxes is one last thing you can do for your loved ones to help them keep as much of your property as possible. There are two kinds of properties. Real property is land, improvements on that land, gas, oil, and mineral rights. All other property is called personal property. It helps to know what is taxable and what isnt so you can leave your relatives with as much as possible without having to pay a lot in taxes.
If the sum of your personal and real property is above the Inheritance threshold of your state, your beneficiaries will be taxed a good percentage of the remainder. Inheritance tax is a controversial law. Having to pay taxes on already taxed income seems unfair. However, it also seems unfair that wealth will be perpetuated within a family line. Inheritance tax helps to redistribute wealth to the government and the common man.
You can limit the amount of money you have to pay in taxes by opening a living trust, giving money to charitable projects, and investing your money into your business or agriculture. Agricultural land may be left the farmer sun of a farmer and be up to 90 tax exempt. Property invested in the family business may also be exempt from taxes up to 90. Planning your wealth and passing it on to your relatives in the most orderly fashion takes time and professional assistance. Texas wills advisors can help you in your planning for inheritance taxes.
- Inheritance tax planning (2009tax.org)
- Inheritance Tax Planning Helps You Get the Largest Financial Value (2011tax.org)