LOUISIANA STATE INHERITANCE TAX
For all deaths that occur after June 30, 2004, the State of Louisiana has repealed all state inheritance taxes. Thus, there is no requirement to file a return with the State and no state inheritance taxes are owed.
FEDERAL ESTATE TAX
In 2013, the Federal Estate Tax has been increased to $5.25 million per person. For a husband and wife, who are living under a community property's regime, that means their joint estate has to be in excess of $10.5 million dollars for there to be an estate tax imposed. Assets that are subject to the estate tax are taxed at 40 percent. The changes are now set permanently into the tax code - at least until the tax code changes again.
The fact that your estate may not be subject to a tax does not lessen the importance of having a properly drafted will to ensure that your property is left to your heirs according to your wishes and that your heirs will be able to easily access the property in your estate.
FEDERAL GIFT TAX
The Federal Gift Tax limits the amount that can be transferred to persons other than a spouse without incurring a tax.
For 2013, annual gifts of up to $14,000 can be made to an individual without incurring a gift tax. If the gift is made by a married couple from their jointly owned assets, it can be as much as $28,000 per year without being taxed.
This is just a quick overview of estate tax laws. Please contact Many & LoCoco today to meet with one of our attorneys to fully understand these laws and how they may affect you.
The Attorneys of Many & LoCoco assist clients with Estate Planning, Estate Planning for High Net Worth Individuals, Wills, Trusts, Estate Planning for Parents with Minor Children, Probate, Succession, Administration, Interdictions, Business Succession Planning, Power of Attorney, Advanced Medical Directives, and Special Needs Planning throughout Orleans Parish. We serve parts of Southern Louisiana, including but not limited to New Orleans, Metairie, Mandeville, Convington, Gretna, Arabi, Marrero, Westwego, Harvey, Chalmette, Kenner, and the Parishes of Orleans, Jefferson, St. Tammany, and St. Bernard, LA.