Estate Tax: An Instance Of Double Taxation?
Nobody wants to pay their taxes twice, and this is why a lot of people take umbrage with the federal estate
tax. The estate tax can be logically called an instance of double taxation, and we will explain by way of
Let's say that you work for a company and receive direct deposits every two weeks throughout your forty-
year career. When that money gets to your account it is going to be markedly less than your gross income,
right? Depending on your tax bracket and number of dependents you may be left holding perhaps $70 out of
every $100 that you earned.
Out of that remainder you go forward in life and you do what you can to accumulate some resources. Any
resources that you are able to successfully put together were assembled with after-tax dollars. If you put a
certain percentage of every paycheck in the bank along the way your savings account is not taxed again due
to its very existence.
But if you were to pass away with resources that exceed the exclusion amount the federal government will
swoop in and tax the funds in that bank account as you attempt to pass them on to your loved ones, and tax
Whether it is fair or not, at the present time the estate tax is a fact of life and there is nothing that the
individual can do about its existence. But what you can do is take steps to reduce your exposure, and the
best way of doing this is with the assistance of a licensed and experienced San Bernardino estate planning
Experienced estate planning attorneys Redlands CA of the Elder and Disability Law Firm offers estate
planning and business planning resources to residents of Redlands CA. To learn more about these free
resources, please visit www.san-bernardino-elder-law.com/ today.