Your Estate Plan Should Consider Consequences of these types of Taxes:
1. Estate Tax - it consists of an accounting of everything you own or have certain interests in at the date of death and all prior gifts you have made during your life time. Taxes are not paid if you pass away and have under $11.58 million of assets and gifts in 2020. ESTATE PAYS. Wisconsin is a pick up state to the Federal Government.
2. Inheritance Tax - is assessed on the legacies received by the beneficiaries of
the estate. BENEFICIARY PAYS. Wisconsin does not have.
3. Gift Tax - transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether the donor intends the transfer to be a gift or not. PERSON MAKING THE GIFT PAYS . Federal Government. $15,000. The top marginal rate is 40%.
4. Income Tax –annual tax levied by the government on profits. PERSON, ESTATE, and BENEFICIARY PAYS.
5. Capital Gains Tax - the difference between the amount you paid for the asset and the amount you sold it for is a capital gain or capital loss.