Estate taxes explained quick and dirty.

[@Vnix]

Me: "Hey bro, here's a million dollars because you're awesome" My Friend: "Hey thanks man!" IRS: "Hey guys whats going on here?"

[@staysharp_chaos]

So keep all liquid funds in cash in the safe and don’t report it. Got it

[@CMSLawFirmLLC]

lol - that's not exactly how I'd do it...

[@staysharp_chaos]

@@CMSLawFirmLLC I’d love to know

[@CMSLawFirmLLC]

@@staysharp_chaos first, I've got some other videos on it. Second, if you're in WA state and are looking to do something for your assets, you're welcome to talk to me. Third, if you're in another state, I'd reach out to an estate planning attorney there and they can help. The solution is often tailored to the individual depending on their specific circumstances.

[@staysharp_chaos]

@@CMSLawFirmLLC yes sir, Ohio. I appreciate the feedback! God bless

[@jimhenderson2308]

So assets in a trust avoid probate but not escape being counted to arrive at the value of the estate? I also believe there is a look back period from date of death to account for any cash withdrawals or property transfer with a deed that were conducted just prior to an expected death for purpose of reduce assets in estate? Or is the look back just for determining the amount of assets to evaluate if someone in need of nursing home care is eligible for financial assistance?

[@CMSLawFirmLLC]

Yes to all of that. :) Lookback is three years for estate inclusion (in most states), five years for medicaid eligibility.

[@jwhitt777]

Estate tax goes against life insurance?!?! You can't convince this isn't robbery.

[@CMSLawFirmLLC]

Luckily I don't have to. It's just the law. I don't make em up, I just show you how to get around it (legally) :)

[@redraiderboz]

Thanks for the info. Quick clarification...: If the total estate is $12M, is the entire $12M taxed? Or is it just the excess of the $11.2M that is taxed?

[@CMSLawFirmLLC]

Whatever the exemption amount at the time, everything OVER that is taxed.

[@pdnapora]

Is the $15k tax exempt gift at the federal level? I know you're talking about WA, but started with what the Feds will or won't tax.

[@voiceofreason4907]

Does the Federal estate tax deduction only apply to Federal estate taxes paid, so if the estate is under the Federal estate tax exemption, there is no deduction? I'm asking because if a qualified retirement plan distributes to the estate as beneficiary, the estate pays 37% on that distribution. Is there any deduction the beneficiary can take for the 37% the estate paid on the distribution before it was divided up among beneficiaries of the estate?

[@GeneL56]

Chris, at 4:45 mark of the video, you said: "You can double your (WA) estate tax exemption if you are married". So if you are married is the exemption $2.193M X 2 ? Thanks.

[@CMSLawFirmLLC]

If you do some trust planning, yes, you can do this. It's called a credit shelter trust.

[@GeneL56]

Chris, another question, at the 5:40 mark, you said if you have a house in California, you won't pay WA estate taxes on it, but you still have to list it when you file. So, it's just to disclose you have that property for show purposes only? Thanks again.

[@CMSLawFirmLLC]

They want to know all of your assets, then non-WA assets are subtracted out. They simply want the full picture of your assets.

[@叔叔胖-k9f]

Is there difference between us citizen and green card holder?

[@CMSLawFirmLLC]

Yes. Google it. :)

[@PotniaTheronVT]

Does everyone have to file the form 706, or only those who have met the threshold? Thank you.

[@PotniaTheronVT]

My Mom died in 2020. I did her income taxes, but did not do the form 706 (yet?).

[@CMSLawFirmLLC]

My first answer is to contact an attorney in your area before you do anything. My second answer is the 706 is usually only needed if you exceeded the threshold.

[@bginc2849]

can email just be used if you do not have a phone to make an appointment ?

[@CMSLawFirmLLC]

Not sure what you're asking... if you're talking about with me, usually we need to chat somehow.

[@seanm3226]

Your interpretation of the gift tax was unnecessarily confusing. Though multifaceted, it’s actually rather simple.

[@CMSLawFirmLLC]

Sorry it didn't resonate with you. I'll give it another shot in a couple weeks. :)

[@dashak4927]

Thank you for useful info

[@CMSLawFirmLLC]

You're welcome!

[@stevecolby6505]

How does a state know that you did not gift your assets away to avoid paying state estate tax? In short, do you have to tell the state how much of the federal exemption you have used up? If so, can a state go after gifts that you made over the $15,000/yr and claimed against your federal exemption while you lived in another state prior to becoming a resident of the state that you die in? In effect, the state would be taxing assets of excess gifts (over $15k/person) that you took over a lifetime.....even when you did not live in that state.....This does not seem fair.

[@CMSLawFirmLLC]

You don't have to tell the state, but that's because (in WA state at least) there is no gift limit. Hope this helps!

[@dennisjex2965]

U got to pay if eatate closed 2023 April. Beneficiaries paid taxes

[@CMSLawFirmLLC]

I don't know. What was the net worth?

[@soybean70]

I thought surviving spouses didn't pay estate tax?

[@CMSLawFirmLLC]

Usually not until they die - there's an unlimited marital exemption (in WA state at least).

[@jaysteinmetz5915]

Rock Chalk

[@CMSLawFirmLLC]

YES!!!

[@mathewidicula6425]

The estate tax, and even a stronger estate tax is the only way to ensure an upward financial mobility for the future of America, without it the stagnant wealth of trust fund babies only become more entrenched in the class they were born in to. And The American Dream becomes that much more of a mirage.

[@CMSLawFirmLLC]

Okay. Thanks for sharing!