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Conference nyoss1::market_investing

Title:	Market Investing

Moderator:	2155::michaud

Created:	Thu Jan 23 1992
Last Modified:	Thu Jun 05 1997
Last Successful Update:	Fri Jun 06 1997
Number of topics:	1060
Total number of notes:	10477

729.0. "estate avoidance after death" by SWAM1::KIRBY_KR () Fri Jun 03 1994 17:29

    I am looking for some information on avoiding estate taxes after the
    person passes on.  I looked in note 488 but it mostly concerned
    planning prior to death to avoid taxes. If there is another note, point
    me in the right direction.
    
    Here is the issue.  My mother-in-law's mother recently passed away and 
    left her about 15k.  While discussing some investment options she
    mentiond that she wanted to avoid state tax and estate tax. 
    
    I am familiar with tax free mutals for the state tax but not with 
    estate avoidance.  I tend to work more with the equities.
    
    Any advice would be appreciated.
    
    Kris

T.R	Title	User	Personal Name	Date	Lines
729.1		REDZIN::COX		`Sun Jun 05 1994 08:36`	16
	Since my references are packed in box #??, I will answer in the generic... The FED and all states have a $$ value of inheritance below which there is no tax owed by the inheritee. Usually, that number in in the hundreds of thousands. Offhand, I connot recall a state where $15K is taxed. Of course, once you take the inheritance and re-invest it, you are then taxed on that income/cg. And I doubt that state taxes on the income off a $15K investment to a retired person (a presumption, here) are going to be of paramount importance. Take the $15K and put it in Fidelity Equity Income II or similar lowish risk, excellent return, Growth_&_Income fund as long as the taxee's bracket is 28% or less. As Always, For What It's Worth..... Dave
729.2	The Estate pays the taxes	ROYALT::DHILL		`Mon Jun 06 1994 11:42`	3
	And to add to the previous note, it's the ESTATE and not the inheritee that pays the taxes. Any distribution is made AFTER taxes are paid, so is NOT taxable income to the inheritee/distributee.
729.3	Not necessarily	I18N::GLANTZ		`Mon Jun 06 1994 13:36`	2
	At least in MA and MD, the estate MAY choose to pay inheritance taxes or it MAY choose to pass that obligation on to the beneficiaries.
729.4	$$ value for MA state	DCEIDL::WONG	David Wong @ZKO 2-3	`Tue Jun 07 1994 10:23`	10
	>> The FED and all states have a $$ value of inheritance below which >> there is no tax owed by the inheritee. Usually, that number in in >> the hundreds of thousands. ... Does anyone know offhand what the $$ value is for MA state before the inheritance tax kicks in? I know the FED's $$ value is 600,000. thx, david.
729.5	mass will align with feds	NOVA::ABBOTT	Robert Abbott	`Tue Jun 07 1994 11:52`	9
	re .4 I don't know the exact amount at the moment, but I do know that the Mass threshold value is moving to align with the fed. value of $600K. There's an increment this July and then a step up to $600K in July 95. Rob, who just went through estate planning.
729.6	Check back issues of Money	SFC01::GREENE	CASE: No Pain, No Gain!	`Tue Jun 07 1994 12:04`	5
	Check out Money magazine. An issue several months back (3-9 months?) had a nice summary of inheritance tax issues state by state. Dave
729.7		STOWOA::GIUNTA		`Wed Jun 08 1994 09:28`	4
	The MA limit was $200,000, but as noted in a previous reply, they are gradually changing it to move up to the $600,000 Federal limit. I'm not sure when it will be completely phased in.
729.8	$100,000 per year until 1996	18889::BEAULIEU		`Wed Jun 29 1994 13:25`	5
	when my father passed away in 1992, the state limit was $200,000. During that year it was announced that the limit would be increased by $100,000 per year (beginning in 1993) until it reached the Federal Limit of $600,000 which means that the limit will be reached in 1996.