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Estate planning is the systematic process of using the most effective and
efficient methods for the accumulation, conservation, and distribution of
the estate assets according to wishes of the owner of an estate, while
minimizing the effect of:
Probate is a legal process that takes place after someone dies. It includes:
- proving in court that a deceased person's will is valid (usually a
routine matter)
- identifying and inventorying the deceased person's property
- having the property appraised
- paying debts and taxes, and
- distributing the remaining property as the will directs.
Typically, probate involves paperwork and court appearances by lawyers. The
lawyers and court fees are paid from estate property, which would otherwise go
to the people who inherit the deceased person's property. The probate fee is
based on the value of the estate and it can be substantial. The following is
an average probate cost reference:
|
PROBATE
FEES
Nationwide
Average of Lawyer & Agents Charges
|
| Estate
Value |
Probate Fee |
Estate Value |
Probate Fee |
| $40,000 |
$3,150 |
$150,000 |
$9,683 |
| $50,000 |
$3,850 |
$175,000 |
$12,010 |
| $60,000 |
$4,550 |
$200,000 |
$12,863 |
| $70,000 |
$5,250 |
$225,000 |
$13,183 |
| $80,000 |
$6,000 |
$250,000 |
$14,350 |
| $90,000 |
$6,650 |
$300,000 |
$16,683 |
| $100,000 |
$7,350 |
$400,000 |
$21,350 |
| $125,000 |
$9,188 |
$500,000 |
$30,000 |
Estate taxes are taxes based on the value of the estate you leave when you
die. Estates valued at more than $675,000 in 2000 (The amount will increase
gradually to $1 million by the year 2006), are subject to the federal
estate tax. Some states use lower limits, but other states charge no estate
taxes at all. Any estate taxes that are due are usually paid for by the estate
itself. This sets them apart from inheritance taxes, which are state taxes
that your heirs may be required to pay on the property they inherit. For more
information consult IRS Publication
950 Introduction to Estate and Gift Taxes, download
it from the IRS Web site , or order by calling 1-800- (829-3676).
Basis example of how to minimize estate taxes is provided here for your
reference only. To properly plan your estate please give us a call, or seek
professional advice.
Estate tax the estate tax, probating the estate, and , methods . Tax
considerations are usually a significant part of the effort. At the death of the
owner, the estate plan functions to distribute the estate with minimum
administration costs and taxes according to the wishes of the owner. Minimizing
the cost of distributing an estate can only be accomplished by anticipating
expenses and planning ways to avoid them before death occurs |
