Law Offices of Roshni T. Desai
Long-term Planning For Orange County

What should you know about estate taxes?

Californian residents who are handling an estate after the passing of a loved one will have to deal with state taxes as well. These matters can get complicated quickly and making mistakes can be costly, so it's best to have some guidance throughout the process.

FindLaw has a page on dealing with estate taxes in every state. While some taxes are in the middle of getting rid of their estate tax systems, they still currently apply. The amount of taxes you could face when receiving or dealing with property can currently differ depending on your relation to the deceased individual that the property belonged to. For example, if you're a distant cousin, the property you receive could be taxed more compared to a child of the departed. Tax rates can also vary. In some cases, taxes may apply to each individual piece of property that is being passed on. In other cases, the estate on a whole is what's taxed.

There can also be exemptions to taxation, which differs in a similar way by changing depending on your relation to the departed. Inheritance tax systems are also currently being phased out in some states.

"Pickup" taxes are something you may also need to become familiar with. This is a system in which the IRS takes money for taxes for inherited property through what the estate is already paying them. Because of this, taxes outside of that generally won't need to be paid.

If you are dealing with estate property in any manner and have other questions about taxes, you may want to speak to an experienced attorney. This is not an area where you want to make mistakes.

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