Articles Tagged with Estate tax

Acting as the personal representative to an estate comes with a lot of responsibility, none the least of which is ensuring that all the proper paperwork is filled out and submitted to the proper authorities. While Wisconsin has essentially done away with the estate tax, executors still need to turn in tax returns on behalf of the deceased and ensure any outstanding taxes from the estate’s income are paid.

According to the State of Wisconsin Department of Revenue, more than one-tax form is required for deceased taxpayers. Those forms include:

  • Individual Income Tax Return

Receiving an inheritance in Wisconsin comes with many questions, including those about state and federal taxes. Fortunately for state residents, changes to federal tax laws in 2013 gave heirs a big break on how much tax may be levied against an inheritance.

The American Taxpayer Relief Act of 2012 (ATRA 2012) effectively ended inheritance and estate taxes for Wisconsin residents and drastically increased the threshold for federal taxes as well. Until the bill’s passage, Wisconsin estate taxes were directly tied to rates on federal inheritance taxes under what is known as a “pickup tax.”

Under the old law, Wisconsin “picked up” a portion of the credit for state death taxes allowed on the federal estate tax return (federal form 706 or 706NA). Because there is no longer a federal credit for state estate taxes on the federal estate tax return, there is no longer basis for the Wisconsin estate tax.

Which Of These Powerful Secrets Could You Use To Build Your Ideal Estate Planning Legal Program

  • Keep your estate settlement simple;
  • Avoid the court-supervised Probate process when you die;

No Estate Tax, No Worries?

Will I Owe Estate Tax?

You may have read recently a great deal about the debate regarding estate tax making it appear as if avoiding estate tax is the most important reason why individuals and couples need to prioritize estate planning. However, this is simply not the case. In fact, with the current federal estate tax exemption of $10.68 million for married couples and $5.43 million for individuals, estate tax is not an issue for the majority of individuals who need to begin the estate planning process.

Top Reasons Why You Need an Estate Plan

If avoiding estate tax is not a priority for you in the estate planning process, one or more of the following common reasons for estate planning probably apply in your case. Continue reading