Legal Question in Wills and Trusts in New Hampshire

Re: inheritance taxes

There are no inheritance taxes unless you have a lot of money or assets to leave. I think the current level is 1.5 million -- but the IRS site would tell you for sure. If you have that much to leave, and even if less, you should see an estate lawyer to get a will and learn about the options.

Re: inheritance taxes

There are no inheritance taxes unless you have a lot of money or assets to leave. I think the current level is 1.5 million -- but the IRS site would tell you for sure. If you have that much to leave, and even if less, you should see an estate lawyer to get a will and learn about the options.

Re: inheritance taxes

The answer to the question will depend in part upon where you live (or more accurately, are "domiciled" for tax purposes), and in part upon where your children live.

The answer can vary state by state - I profess no knowledge of Florida law, so if you are seeking advice on Florida law, you should speak with a Florida attorney.

As far as Federal estate taxes are concerned, the current threshold is $3.5 million, and with careful planning, each spouse can pass this amount on to the next generation (i.e. up to $7 MM combined). Next year, the threshold is unlimited (but there are changes in capital gains tax basis), and then in 2011, unless the law is changed, the threshold will drop back down to $1MM per person. This is a tax on the estate of the decedent, rather than on the beneficiaries.

Most states have abolished inheritance taxes (though there are exceptions). NH "recently" abolished its inheritance tax (i.e. a few years ago). So, at present, inheritances should be "tax-free." However, many state budgets are stressed, and it is not certain at this point whether an inheritance tax might make a comeback in NH.

Finally, it is possible to make gifts during your lifetime, but there is a lifetime cap, after which "gift tax" is payable (presently, $1MM cap, exclusive of annual gifts per person/per recipient of less than or equal to $12,000/year).

In a word, you should speak to an estate planning attorney where you live permanently. Feel free to contact me if you need assistance in NH, as I am licensed and live there as well as practicing in Massachusetts.