Protecting your estate is essential if you want your wealth to transfer to your family and not be given to the government. In Pennsylvania, you need to take some extra precautions due to laws and regulations associated with inheritance tax. Keeping yourself informed about current tax obligations will help ensure that you keep your assets within your family as much as possible when a loved one passes away.
Be aware of inheritance tax
The IRS has not imposed an inheritance tax, but Pennsylvania has. You can read more about the PA Inheritance Taxes and rates here. Setting up a strategy to keep your wealth in your family is usually best if you want to help ensure your beneficiaries pay as little as possible in taxes to the state.
Understanding the intricacies of estate taxes
Learning about the intricacies of estate taxes can help keep you better informed. One of the ways some individuals help ensure that wealth transfers to family members is by using a trust. However, knowing the benefits associated with different trusts is essential if you want to safeguard your funds.
Revocable and irrevocable trusts are popular tools used to hold property that will eventually be transferred to your living beneficiaries upon your death. However, it is crucial to note that only certain trusts can help your heirs avoid paying estate or inheritance taxes. Whether using a trust makes sense in your particular situation requires a consultation with an experienced estate planning attorney.
Staying abreast of current regulations regarding estate taxes should be extremely helpful in ensuring that your wealth gets transferred in the best way possible.