The idea of paying taxes is enough to make almost any California resident groan. Even after their passing, residents’ estates could face taxation from the government. Of course, many individuals may think that they do not have to worry about reducing estate taxes because are not wealthy enough to face such taxation. However, it is still important to plan for that possibility because matters can change.
When it comes to taxes, the details and rules change almost on a yearly basis. As a result, it is easily possible for the government to change the exemption amount for estate taxes. In fact, changes to that exemption have occurred many times over the years. For example, even though today’s exclusion limit is $11.58 million, it was only $675,000 in 2001. While it may seem as if the exclusion limit is only on the increase, it may not always stay that way.
Additionally, there is a chance that individuals could become affluent. Many matters in life have an element of chance about them, and the possibility exists that a person who may not feel wealthy now could come into a considerable amount of money later in life. If he or she has not prepared for estate taxes, trouble could hit later.
Reducing estate taxes is something worthwhile to consider for California residents of any income level. No one wants his or her family to be left with less because of taxes, so exploring preparation options is wise. Even if parties do not think it will help, gathering information may open their eyes to a detail they had not considered before.