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If a man dies in Nevada, with a Living Trust, what does the estate have to pay in terms of estate Tax? How much cost is there

Incline Village, NV |

in terms of any legal action that must be taken after the death?

What are the legal fees going to cost after the death?

thank you.

Attorney Answers 4

Posted

Please follow the counsel of Mr. Katz and Mr. Fredrick. If there is a NV probate involved you can get a sense of the fees by referring to NRS 150.060 (4). If there is a Trust administration rather than a probate, the fees may be different depending on the amount of legal effort and the law firm you choose. Most probate and trust admin lawyers in NV will give you a free initial consultation, so please take one up on the offer. Best of luck.

I am a lawyer but I am not your lawyer, so get a second opinion and do not rely exclusively on my answer.

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Posted

You have asked a lot of loaded questions and not given any information needed to begin answering them. Are you concerned about state estate tax or federal? Income taxes? What is the size of the trust estate? The legal fees are going to depend on the administration that is necessary as a result of the death. Many people specifically execute trusts in order to limit the need for legal services after death. It all depends on the work that must be done.

The easiest way to get a handle on this is to meet with a probate lawyer, share ALL of the facts of the situation and determine what needs to be done.

James Frederick

*** LEGAL DISCLAIMER I am licensed to practice law in the State of Michigan and have offices in Wayne and Ingham Counties. My practice is focused in the areas of estate planning and probate administration. I am ethically required to state that the above answer does not create an attorney/client relationship. These responses should be considered general legal education and are intended to provide general information about the question asked. Frequently, the question does not include important facts that, if known, could significantly change the answer. Information provided on this site should not be used as a substitute for competent legal advice from a licensed attorney that practices in your state. The law changes frequently and varies from state to state. If I refer to your state's laws, you should not rely on what I say; I just did a quick Internet search and found something that looked relevant that I hoped you would find helpful. You should verify and confirm any information provided with an attorney licensed in your state.

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I agree with Mr. Frederick..For instance, you said he died in Nevada. Was he a resident of Nevada or of another state? Was the trust drafted under Nevada law or the law of another state? is there proeprty in other states or countries? Were all of his assets titled in the name of his trust? Did he have a spouse? There is not enough information to provide a helpful answer beyond Mr. Frederick's response.

This is not specific legal or tax advice. My posting this answer is for general, non-specific information only. My answering this quesiton does not establish an attorney-client relationship,

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Posted

Exemptions and tax rates
Year Exclusion
Amount Max/Top
tax rate
2001 $675,000 55%
2002 $1 million 50%
2003 $1 million 49%
2004 $1.5 million 48%
2005 $1.5 million 47%
2006 $2 million 46%
2007 $2 million 45%
2008 $2 million 45%
2009 $3.5 million 45%
2010 Repealed
2011 $5 million 35%
2012 $5.12 million 35%
2013* $1 million 55%
* under current law
As noted above, a certain amount of each estate is exempted from taxation by the federal government. Below is a table of the amount of exemption by year an estate would expect. Estates above these amounts would be subject to estate tax, but only for the amount above the exemption.
For example, assume an estate of $3.5 million in 2006. There are two beneficiaries who will each receive equal shares of the estate. The maximum allowable credit is $2 million for that year, so the taxable value is therefore $1.5 million. Since it is 2006, the tax rate on that $1.5 million is 46%, so the total taxes paid would be $690,000. Each beneficiary will receive $1,000,000 of untaxed inheritance and $405,000 from the taxable portion of their inheritance for a total of $1,405,000. This means the estate would have paid a taxable rate of 19.7%.
As shown, the 2001 tax act would have repealed the estate tax for one year (2010) and would then have readjusted it in 2011 to the year 2002 exemption level with a 2001 top rate. However, on December 17, 2010, Congress passed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Section 301 of the 2010 Act reinstates the federal estate tax. The new law sets the exemption at $5 million per person.[22] A top tax rate of 35 percent is provided for the years 2011 and 2012.[23]
Under current law, in 2013 the estate tax will revert to the higher 2001-2002 levels,[24] unless new legislation is passed again changing the rates.[25]The estate tax in the United States is a tax imposed on the transfer of the "taxable estate" of a deceased person, whether such property is transferred via a will, according to the state laws of intestacy or otherwise made as an incident of the death of the owner, such as a transfer of property from an intestate estate or trust, or the payment of certain life insurance benefits or financial account sums to beneficiaries. The estate tax is one part of the Unified Gift and Estate Tax system in the United States. The other part of the system, the gift tax, imposes a tax on transfers of property during a person's life; the gift tax prevents avoidance of the estate tax should a person want to give away his/her estate.
In addition to the federal government, many states also impose an estate tax, with the state version called either an estate tax or an inheritance tax. Since the 1990s, opponents of the tax have used the pejorative term "death tax".[1] The equivalent tax in the United Kingdom has always been referred to as "inheritance tax".
If an asset is left to a spouse or a (Federally recognized) charitable organization, the tax usually does not apply. For deaths occurring up to 2012, up to $5,000,000 can be passed from an individual upon his or her death without incurring federal estate tax.[2]

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James P. Frederick

James P. Frederick

Posted

Great summary.

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