When a transfer of wealth occurs when one person passes away, this means that assets are passed from one person to another, generating possible tax consequences.
Taxes are inevitable, and any good estate plan created by an experienced attorney should look for ways to minimize this liability. There are a few different kinds of assessments that can occur when someone passes away but the most common ones are inheritance and estate taxes.
Since many people don’t have a large enough estate to trigger the federal estate tax in 2022 and beyond, you need to be mindful of any state related implications. For anyone who inherits significant amounts of property, this could also cause problematic consequences over the long run for them if they are not aware of how their tax situation could shift. Recognizing the many different impacts of this situation, you want to have the support of an attorney engaged early on.
The simple fact is that estate planning is tax planning and gives your beneficiaries as well as you the best possible opportunities to look at things from many different perspectives and to determine the most appropriate course of action for your estate plan in California with those in mind.