There are several complications that can arise during the probate process, many of which are related to taxation. Thankfully, the estate tax rarely becomes an issue during Junction City probate cases. This is because there is no estate tax under Kansas state law.
However, the lack of an estate tax under state law does not mean it will never be an issue. In some cases, federal estate taxes can apply. What’s more, the laws of other states could result in an unexpected financial obligation during probate. A skilled probate attorney at our firm could assist with any estate tax issues in Junction City probate cases.
There Is No Kansas Estate Tax
Taxation issues can greatly complicate the probate process. Any miscalculations during estate planning could result in unexpected tax debt or other consequences for the heirs of the estate. It is crucial to seek out legal guidance early on to ensure that these tax consequences do not manifest in the future.
An estate tax is a charge on valuable property that passes from a deceased individual to their heirs. Fortunately, there is no state-level estate tax in Junction City. In fact, 38 states have opted not to adopt an estate tax at all. Due to this fact, there are no estate tax issues to face during probate in Kansas—at least on the state level.
Other State Tax Obligations Could Apply
The lack of an estate tax in Junction City does not mean that the issue will never come up during the probate process. This is because the laws of other states could impact a probate case in Junction City. An attorney could help unravel these multistate issues.
There are states with expansive estate or inheritance tax laws. If a person passes away in Junction City while owning property in another state, there could be a tax obligation under that state’s law. These issues should be addressed during the probate process. In addition to estate taxes, it could also be necessary to resolve gift or inheritance taxes across state lines during the course of a probate case.
There Is a Federal Estate Tax
Unlike most states, the federal government does use an estate tax. In fact, this tax can cost an estate a large portion of its assets. The good news for most families is that the federal estate tax does not apply in most cases. This is thanks to the substantial exemptions that exist under the law.
Currently, the law exempts estates that are worth less than approximately 5.5 million dollars. Given that all but only a handful of estates meet this minimum, the federal estate tax rarely applies.
There are also estate planning tools that could allow families to reduce the value of the estate below this threshold. Many large businesses rely on a variety of trust agreements to transfer ownership of these assets in a way that will avoid triggering a federal estate tax debt.
Talk to an Attorney about Estate Tax Issues in Junction City Probate Cases
The prospect of your loved ones facing estate tax debt after your passing can be upsetting. Thankfully, there is no estate tax under Kansas state law. However, that does not mean other taxation challenges won’t put your heirs in financial jeopardy. Let a skilled attorney advise you on estate tax issues in Junction City probate cases. Call today.