Inheritances in the United States

For inheritances in the United States, the laws of each state establish who owns the assets of a person after their death. Or, to me more precise, who acquires the ownership of the real estate, money, rights and debts of the deceased, and in what percentage.

However, there are legal aspects that apply to the entire country and principles that must be known, such as the types of will, the rights of the spouses and children, succession rules and applicable taxes.

Here, Jim Liggett CPA, who has been assisting taxpayers and small businesses for over 30 years in tax preparation, tax planning, bookkeeping, estate and trust taxes, and much more, will share some important points about inheritances in the United States.

 

Types of wills in the USA

 

Jim Liggett CPA indicates that each state establishes its own rules for the types of wills. So this professional advises consulting with an attorney specializing in estate planning. However, as a general rule, there are three types of wills:

Simple will: the testator, who must be of legal age and in full mental faculties, lists his assets and names heirs. The will must be dated and signed by the testator and two or three witnesses, depending on the state.

Testamentary trust will: all or part of the testator's estate is placed in a trust and an administrator is appointed. The administrator decides how the assets are distributed among the beneficiaries. Jim Liggett CPA specifies that this type of will is frequent when the testator has minor or disabled children.

Joint will: when two people testify by naming the surviving heir to the other.

 

Taxes and inheritances in the USA

 

Experienced certified public accountant, Jim Liggett, explains that the inheritance tax, or best known as estate tax, is paid on the estate of the deceased and before proceeding with the delivery of each part to the heirs.

Liggett CPA points out that the tax rate varies depending on the amount, but does not exceed three percent. Widowers who inherit from their spouses are excluded from this obligation.

“At the state level, only a few states have estate tax,” says Jim Liggett CPA. “Thus, in Minnesota only the forms must be filled out for the payment of inheritance tax in inheritances greater than $ 2.7 million, in New York it is $ 5 million, in Washington, $ 2,193,000, and in Oregon $ 1 million. The tax rate ranges from 10 to 16 percent”.

As Jim Liggett CPA adds further, some states such as Iowa, Kentucky, Maryland, Nebraska, New York and Pennsylvania have inheritance taxes that apply on the amount that each heir receives, after the inheritance has already been delivered.