Are probate and estate taxes the same thing?
Posted on Sep 27, 2013 12:05am PDT
Question: Are probate and estate taxes the same thing?
Answer: No, they have only one thing in common – they both occur after your death.Other than that, they really don't have much to do with one another.
Estate tax is a tax on the privilege of transferring wealth when you die. It is a federal tax imposed by Congress, and enforced by the IRS. Some States (California is no longer one of them) also have a State inhertance tax.
Probate is a legal proceeding in a State court. During the case, a judge determines if you have a valid Will, makes sure your creditors get paid, and orders your assts distributed to according to your Will, or if you have none, to your intestate heirs.
Of course, a good estate planning attorney can show you how to eliminate both Probate and Estate Taxes, increasing the inheritance you're able to leave to your loved ones.
Got more questions? Call us (818.707.8200) to see how you can avoid probate and eliminate estate taxes.
[This blog is for informational purposes only and may not be relied upon as legal advice.]