Many in Miami who are parties to the estates of their loved ones come to us here at The Law Offices of Frye and Vazquez, P.L. concerned about having to pay an estate tax. Most are relieved to hear that few are actually required to pay this tax, as most estates do not meet the tax threshold imposed by the Internal Revenue Service. However, if you are asked to be the executor of an estate, you should understand the process of how this tax should be paid, as the possibility of you having to deal with it is ever present.
First off, you should know what the current estate tax threshold is. According to the IRS, it is $5.45 million for individuals ($10.9 for married couples). You can determine whether or not your loved one's estate exceeds that amount by combining the following numbers:
- The gross value of the estate at the time of your loved one's death.
- The amount of adjusted taxable gifts he or she may have made.
- The exemption amounts that he or she may qualify for.
If that final value comes out be greater than the estate tax threshold, then you need to file estate tax return Form 706 within nine months of the decedent's death. If the monetary assets of the estate are not enough to satisfy the tax amount, you can request to be given an extension of three months by filing a Form 4768. That may give you time to liquidate other estate assets. You can also request to pay the tax amount in installments or postpone the payment of any part of it that may be attributable to a revisionary or remainder interest.
You can discover more information on meeting an estate tax obligation by continuing to explore our site.