Nevada residents should understand that the decisions they make about their estate plans will affect the taxes that may be owed on the estate. It is particularly important that they learn about the taxation their gross estate.
Gross estate refers to all of the assets or interests in assets that individuals own when they die, and it includes all property both inside and outside of the United States. In addition to stocks and bank accounts, a gross estate may also include joint assets with the right of survivorship, community property, annuities, assets for which individuals had a power of appointment at the time of death and life insurance payouts, even the payout are designated to go to beneficiaries besides the estate.
When the value of all assets within a gross estate belonging to a citizen or resident of the United States is totaled and the gift tax specific exemption and adjustments for taxable gifts are factored in and resultant figure is more than the federal estate tax exemption, the executor, or the person managing the decedent’s estate, will have to submit a form 706. The United States Estate (and Generation-Skipping Transfer) Tax Return typically has to be filed even if zero taxes are due.
An attorney who practices estate planning law might assist clients with creating an estate plan that ensures that their wishes will be honored after death. The attorney may also recommend implementing certain estate planning strategies that can help to reduce estate and inheritance taxes and avoid an expensive probate process. Assistance might be provided for drafting wills, powers of attorney, health directives and certain types of trusts. Additional estate administration services the attorney may provide may include legal representation to contest the contents of a will and overseeing the distribution of an estate’s assets.