This is a frequently asked question that is constantly posed to estate planning lawyer Staten Island from their clients. Estate Taxes are very complicated and many people don’t realize a few things. Here are some of the myths associated with estate taxes:
Estate Taxes Aren’t As High As They Might Seem
Although estate taxes are high, they’re not necessarily as high as they seem. It’s important to remember that exemptions do exist. One recent plan that was proposed offered an effective exemption of approximately $5 million. If you want to know how these exemptions would apply to you, you should talk to an accountant.
The Majority Of Families Don’t Have To Pay Estate Taxes
There is a good chance that you will never have to pay a single penny in estate taxes. These taxes are designed to target the extremely wealthy. In most cases, no estate tax needs to be paid. If you’re worried about estate taxes, you should know that they may not be a cause for concern.
There Are Many Politicians That Want To Raise Estate Taxes
If you feel that estate taxes are too high right now, you should know that they might become even higher in the future. There are a lot of politicians that want to increase estate taxes. New bills that ask for an increase in estate taxes are proposed all the time. This is clearly a very contentious issue. Not everyone agrees on the estate tax rate.
Hopefully, this information has helped you to understand just why estate taxes are so high and who they impact. If you still have some questions, you should try to seek out additional information. If you’re going to be paying estate taxes in the future, you’re going to want to know how much you can expect to pay.