Dealing with Estate Taxes
people, however, who do not have the services of a qualified estate planning attorney can understand the intricacies of the new laws in place. When someone passes away, the last thing their loved ones want to deal with are complicated rules and procedures regarding the estate, especially since in addition to the federal tax laws, each state-Colorado included-has its own estate planning laws. People in Colorado would be wise to consult a Colorado estate planning attorney early; having your affairs in order before you pass away can save your loved ones years of added grief.
A recent article by the New York Times discusses some of these issues:
- Only those who make over a certain amount of money are subject to federal estate taxes.
- Those who came into inheritances in 2010 can opt out of the new tax scheme or choose to be subject to it.
- Those who opt out will be subject to new and different taxes should they ever try to re-sell the inherited assets.
- The deadline to choose is November 15, 2011
- A major responsibility for the division of assets and the applicability of the new tax scheme will fall onto the shoulders of the estate executor.
- The I.R.S. has yet to release a final version of the new tax form 8939 which includes the intricacies of the new inheritance tax scheme.
This new tax scheme is complex and could be subject to favoritism on the part of executors. If you live in Colorado, estate planning attorneys Ellman & Ellman, PC, can help navigate not only those situations in which inheritance taxes become contentious, but the common difficulties of balancing federal laws with Colorado inheritance tax laws. A little preparation in advance could save your descendants months or even years of frustration.