How to Reduce Taxes Paid on Probate!

If you prefer to read, the video transcription is below:

Hello. we’re back again with another video from inherit more.

Today we’re going to discuss the issue of presenting assets to the court on behalf of the deceased.   

If you’re the executor of a probate estate – which means that a court has appointed you to administer and handle the legal and financial affairs of someone who has passed away – one of the things that you have to do is make a list of all of the assets that belonged to the deceased. 

You will have to present that list, known as the inventory, to the court.  

You will then pay a fee or tax based on the total value of all those assets on the inventory.  

But take note: you want to make sure NOT to include assets that are not part of this process.  meaning, the inventory should not include assets that automatically go to someone else.

One such asset is an insurance policy.

For example, John dies and names his wife, Mary, as the beneficiary of the life insurance policy. That asset goes straight to Mary, and does not have to go through probate,  and therefore does not get included in the list that’s going to get taxed.

Another example is if John had a bank account and he named his son, Harry, as a co-owner on the bank account. As soon as John dies, Harry becomes the sole owner. There’s no need for the bank account to go through a legal proceeding. Harry gets that without probate.

So before you make that list, before you submit it and pay a tax or fee –  make sure and go through it with an expert or someone who’s very familiar with the process –  to make sure that you are only listing what you have to list, and you’re not paying any more than required. 

We’re happy to be that expert for you. Find us at Inheritmore.com for more content regarding inheritance and asset recovery.

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