In the Philippine setting, there had been changes in the rules related to the imposition of death taxes
. Although inheritance tax is used interchangeably with estate tax, the latter is what the present laws impose.
This is an example of "gap planning," or taking advantage of a tax opportunity that exists between the zero federal estate rules of 2010 and 2011, with the return to federal death taxes
on January 1, 2011.
Clients with estates large enough to be concerned about death taxes
may very well have homes in different states.
More than pounds 1.5bn is likely to be paid in 'death taxes
' in 2007, a 16% increase on the amount 'lost' to inheritance tax in 2006.
If the joint ownership involves spouses, it can result in additional death taxes
by under-utilization of death tax exemptions of the estate of the first to die.
Wise Trust and its trustee, National City Bank, which challenged the Ohio Department of Taxation (ODT) in the imposition of the additional tax in excess of the federal credit for state death taxes
allowable for federal estate tax purposes.
Other alternatives include providing a deduction for state death taxes
to replace the credit for state GST taxes under Sec.
Life insurance can be the least expensive way to fund potential Estate Tax liability In the event that death taxes
are not permanently repealed or reduced significantly, you should maintain the life insurance you bought to pay death taxes
It includes information on what should be reviewed and changed in existing estate and wealth-transfer plans in the short term and what kind of flexibility is needed in the long term, as well as the future of state death taxes
and the alternative minimum tax, and the federal credit for state-level estate taxes.
In 2001, a decedent's estate is allowed a credit against the federal estate tax for death taxes
paid to a state or the District of Columbia.
In one of the scenarios, they demonstrated how gifting minority interests to the children, creating a family limited partnership to hold business real property, and doing a sales-and-leaseback of the principle residence provided a savings of $2 million dollars in death taxes
to the heirs of a family-owned business.
On the other hand, states whose death taxes
are not directly tied to the federal death tax credit, like New York, will not see dramatic reduction until full repeal of the federal estate tax in 2010.