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(Complete Show Notes Below)
In the 46th episode of the Financial Procast:
DISCLAIMER:
LEGAL, INVESTMENT AND TAX NOTICE: This information is not intended to be and should not be treated as legal advice, investment advice or tax advice. No one under any circumstance should rely upon this information as a substitute for obtaining specific legal or tax advice from their own legal or tax advisors.
OPINIONS EXPRESSED are exactly that…opinions and are subject to change without notice. Information has been obtained from sources believed to be reliable, but its accuracy and interpretation are not guaranteed.
It Appears James Gandolfini's Family May Get Whacked by the Estate Tax
If your email inbox looks anything like ours over the past couple weeks, you've likely heard about the supposed estate tax issues that acclaimed actor James Gandolfini's family is going to have with the IRS and the state of New York in regards to a rather large estate tax bill. For those that have missed the details, evidently Mr. Gandolfini's estate is worth more than $70 million and it would appear that his Estate Plan leaves a bit to be desired.
Of course, at this point no news organization has all the facts as they've not been detailed as such, however, there is much speculation and conjecture swirling about relating to the story and tragedy of it all. If things stand as they are now, his family stands to owe the IRS about $30 million in the next nine months…ouch. But we'll have to see how things shake out.
Today's episode is talking more in depth about why you should have an estate plan, why you might consider a trust, and a pretty lengthy discussion about ILIT's…one of our favorite topics.
State Estate Tax Round-up
For those interested in knowing what states in the United States have their very own estate tax for residence, here's the list and the details:
- Connecticut: $2 million exemption with 12% top marginal tax rate
- Delaware: $5.25 million exemption with 16% top marginal tax rate
- Hawaii: $5.25 million exemption with 16% top marginal tax rate
- Illinois: $ 4 million exemption with 16% top marginal tax rate
- Maine:: $2 million exemption with 12% top marginal tax rate
- Maryland: $1 million exemption with 16% top marginal tax rate
- Massachusetts: $1 million exemption with 16% top marginal tax rate
- Minnesota: $1 million exemption with 16% top marginal tax rate
- New Jersey: $675,000 exemption with 16% top marginal tax rate
- New York: $1 million exemption with 16% top marginal tax rate
- North Carolina: $5.25 million exemption with 16% top marginal tax rate
- Oregon: $1 million exemption with 16% top marginal tax rate
- Rhode Island: $910,725 exemption with 16% top marginal tax rate
- Vermont: $2.75 million exemption with 16% top marginal tax rate
- Washington: $2 million exemption with 19% top marginal tax rate
- Washington DC: $1 million exemption with 16% top marginal tax rate
If you die while you are a resident in one of these states, your estate may be subject to both Federal and State Estate Taxes.
