Some California residents know firsthand the difficulties that come with estate taxes. Forgetting to plan for taxes is a common mistake people across the country make when putting together an estate plan. However, failing to consider estate taxes, gift taxes and other taxes that may be left to pay after your death can leave your loved ones with a mess on their hands.
Many people in California know firsthand how difficult it is to deal with the Internal Revenue Service. Especially at the time of a loved one's death -- when taxes are the last thing you want to think about -- the IRS has a way of finding ways to get the most out of the estate. One way this can happen is if the IRS disagrees with your valuation of the estate. Today, this issue has been made abundantly clear in a tax dispute involving Michael Jackson's estate.
When any California resident begins to consider estate planning, there are many factor to think about. For a long time, protecting an estate from estate taxes has been a major priority for many Californians. As the federal government has changed the exclusion levels over the years, people have adjusted their estate planning accordingly. Many people put money or property in trusts to lower the worth of estate so their heirs wouldn't get taxed.
When you are working through the administration process of a loved one's estate, the last thing you want to have to worry about is estate taxes. Your loved one wanted his or her wealth to go straight to family members and loved ones, not to the California and federal governments. However, we have seen several examples in the news of heirs losing a huge portion of a loved one's estate to the Internal Revenue Service because of poor estate planning.
The government requires money in order to operate and continue providing necessary services for a safe and productive society. However, in order to obtain these required operating funds, the government must levy taxes on the population which it governs in California and in every other state. Most people are aware of the income tax system and how it works. On the other hand, many are not so familiar with how the estate tax and gift tax system operates.
California's entertainment industry is no stranger to Sumner Redstone, who owns majority stakes in multiple TV production companies. Although Redstone recently made headlines, it's not for anything related to his involvement in the entertainment industry. In fact, the businessman is in the news because the Internal Revenue Service issued a tax claim against him from a 1972 transaction, which is before he even entered the media industry.
As Alameda County residents celebrated the end of one year and the beginning of a new one, members of Congress were busy reaching an agreement that prevented the country from going over the so-called fiscal cliff. While most people were just happy to learn that a deal had been reached on New Year's Day, the question soon became: What does the deal mean to me?
One of the reasons that same-sex marriage has been passed in other states in addition to California, is because of the preferential tax and legal status granted to married couples. One problem however is that the Defense of Marriage Act, or DOMA, puts the federal government in conflict with the state government. Many of the states' marijuana laws do the same thing.