Estate and Gift Tax Returns in California
Estate and gift tax returns can be part of a comprehesive estate plan. Attorney Linda Ross Myers has an LL.M in Taxation, and is experienced in the preparation of Estate Tax Returns, Gift Tax Returns and Fiduciary Income Tax Returns.
Gift Tax Returns
If you make a gift, or a series of gifts, to any one person which exceed $13,000.00 in any one year, you must file a gift tax return. Under current law, everyone has a $1,000,000.00 gift tax exemption. There may or may not be any tax due when the return is filed, depending on your particular circumstances. If gift tax is due, it is paid by the person making the gift.
Estate Tax Returns
The Estate tax has been repealed for calendar year 2010. Estates of decedents dying in 2010 will owe no estate taxes regardless of their size, unless pending legislation passes. The future of the estate tax under the current law, after December 31, 2010 is uncertain, but the estate tax will most likely be reinstated. What is not known is the amount of the estate tax exemption and the amount of the maximum estate tax rate.
H.R. 4154 was passed by the House of Representatives on December 3, 2009, suggesting a 45% maximum tax rate and a $3.5 million estate tax exemption. The Bill was read to the Senate before the recess in December. If this Bill passes as currently written, it will be effective as of January 1, 2010.
If you have a sizeable estate, lifetime estate planning is essential to minimize your estate tax liability.
Fiduciary Income Tax Returns
Most
Trusts and some Decedent’s estates must file annual Fiduciary Income Tax returns. When the returns are prepared, Forms K-1 are generated and sent to the beneficiaries, indicating what portion of their distribution is taxable income. The beneficiaries then transfer that information to their individual tax returns.
Probate attorney Linda Ross Myers offers skilled legal services to those in the San Francisco Bay Area for probate, wills, trusts and estate planning. Contact her today at 415-230-5347.