What is the Death Tax?
Let’s talk about the estate tax. How far do you know what is the estate tax, also known as the death tax? It’s a tax that is levied upon you when you pass away.
Some government will have said like this “I know you’ve paid taxes all this time, “but how much you have left?” And some says, “Oh, well I have a couple million dollars.” And they will have said back, “Are you within the exemption? “If you’re not within the exemption, “you’re going to have to pay a tax.”
What’s the exemption today in 2019 or 2020? It’s about 11.49 million dollars per person. Alright, so if you have more than 11.49 million dollars, let’s just round to to 11.5 to make this easier, then you don’t have to pay a tax.
But if you have over 11.5 million dollars, and that’s counting all of your assets, whether it’s your house, real estate, accounts, things you might’ve transferred before you passed away, things you’ve transferred while you were still alive, it’s all counted. It’s part of this accumulation period of your whole life.
And if you’ve transferred something 20 years ago, it’s still going to count. The IRS is still going to find out that well, they could find out that you made the transfer. So anything over that 11.5 million dollars for a single person is going to be taxed at 40%.
And you have 15 million dollars and you pass away? Subtract 11 and a half, you have three and a half. Multiply it by 40%, that’s your tax. That’s how much is due within nine months. Nine (9) months, they want the money. So, that is the estate tax in a nutshell.
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