What are the tax implications of estate planning?

Estate planning in Arizona is an important step to consider to help ensure that your property is handled in the way that you desire after you have passed away. One of the primary considerations for estate planning is the tax implications it may present. The Internal Revenue Service (IRS) has several laws in place regarding estate taxes. Depending on the size of a person’s estate, certain taxes may be imposed on the property and assets they leave behind. These taxes are imposed on the estate of a deceased person, not on the beneficiaries who inherit the assets. In Arizona, the estate tax is calculated based on the total value of assets owned by the deceased. Assets that are subject to taxation include real estate, investments, vehicles, jewelry, and other property and possessions that are owned at the time of death. In addition, the IRS imposes an inheritance tax on the beneficiaries of an estate. This tax is based on the amount of money or property each beneficiary receives. Though the state of Arizona does not have its own inheritance tax, it may be subject to federal inheritance taxes. In conclusion, estate planning has several implications related to taxes. It is important to consider these before creating an estate plan, as they could potentially impact the amount of money or property that is left for family members and loved ones.

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What are the tax implications of estate planning?

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