The federal government has created a threshold at which an individual owes federal estate taxes. However, the state of Illinois has its own guidelines, which actually begin before the $5.49-million value assigned by the U.S. government. In fact, the Illinois threshold is at $4-million. Before you complete your estate planning, it’s essential to work with a Highland Park estate tax attorney to ensure you are prepared for the taxes your loved ones will be responsible for.
The Gross Value
Your Highland Park estate tax attorney will first help you determine the gross value of your estate to determine if your heirs will need to pay the tax. While property ownership is the basis for determining whether an estate will be taxed, there is a long list of other items that factor into the value of the estate. Some of these factors include vehicles, life insurance policies, investment accounts, business interests, bank accounts and more.
Your Tax Return
Once it comes time to file on an estate, it’s best to work with a Highland Park estate tax attorney to ensure you complete the process properly to avoid issues with the IRS. Not only do you need to understand what you must claim, but you will also need guidance in determining any exemptions you may have. For instance, creating a trust with some of the funds can help alleviate some of the tax burden.
If you think you may owe state estate taxes, it’s important to work with a Highland Park estate tax attorney. These professionals are well aware of the ins and outs of estate taxes and which estates will owe them. They can help you accurately calculate the value of your estate and then determine any exemptions to minimize your tax burden.
Do you understand estate taxes and how they may apply to you? Visit the Orlowsky & Wilson website to learn more.
