Many people know that death and taxes are the only sure things in the world but few realize that with death comes more taxes. It is hard for some people to understand why their heirs are expected to pay taxes on money that has usually already been taxed once. While there are many people who complain publicly about this form of taxation unless some laws change in the near future your family members or heirs will be required to pay these taxes.
Why Estate Taxes are Charged?
Some believe it is extremely harsh and a bit inappropriate to charge taxes on estates after the death of an individual but the government depends on this practice. Large amount of revenue come from taxing estates that help both federal, and state, governments prosper. In order to ensure that all taxes are paid Kentucky residents are made to go through a probate process in order to transfer property. This process gives the government a chance to scrutinize a will and determine the amount of taxes they will receive or even declare the entire will invalid which, if there are no blood relatives around, entitles the state to the entire estate.
Determining Kentucky Estate Taxes
Finding out what sort of number your family should expect requires a bit of research. The first thing you should do is contact an experienced estate planning attorney. They will have the most experience and current knowledge on Kentucky estate tax laws. In many cases the size of your estate will play a major part in the amount of taxes that will be required. The more you can find out up front the better you will be able to prepare your family to help them avoid a financial burden.
Avoiding Kentucky Estate Taxes
Quite a few people do everything in their power to avoid paying a tax that they consider to be unfair. There are a few ways that individuals can transfer money to their heirs without going through Kentucky probate attorneys that are perfectly legal. The first, and often easiest, thing to do is set up personal savings account jointly with heirs and adding a survivorship clause. In these situations the funds will be immediately transferred to the heir after death with no delays. Charitable donations can also be made prior death which will help ensure that the organizations receive bequests while helping the estate by lowering the value which lowers the tax.
