Legal Question in Wills and Trusts in California
Tax Laws and Trusts
My mother has three properties in trust for my sister and I. She is under the impression that my sister and I will not have to pay inheritance tax on those properties when she dies. Is this correct?
Asked on 3/02/06, 1:52 pm
1 Answer from Attorneys
Ken Koenen
Koenen & Tokunaga, P.C.
Re: Tax Laws and Trusts
There is no "inheritance tax". There is an estate tax, which is paid by the estate before the estate is distributed to beneficiaries. Currently, there is a $2 million dollar exemption.
In other words, if the NET value of the estate is less than $2 million, there is no tax. The estate includes life insurance and IRA's
Answered on 3/02/06, 2:16 pm
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