If you are in charge of a loved one’s estate, or in the middle of setting up an estate plan and want to understand how your decisions will affect your assets and your family members in the future, it is crucial to pore over different aspects of the estate planning process.
Some people do not prepare for the challenges that come with estate taxes, such as filing a return and dealing with the financial commitments associated with estate tax liability.
Are estate taxes imposed in Wisconsin?
According to Wisconsin’s Department of Revenue, the state does not impose estate taxes on the estates of decedents who passed away after 2008. Moreover, Wisconsin does not impose inheritance taxes if the decedent passed away after 1992.
Although this simplifies the process of estate planning and administration for many families in the state, there are other tax-related matters and financial issues to keep in mind. For example, other concerns can arise, such as a beneficiary losing eligibility for government benefits due to inheritance.
Are estates liable for other taxes?
Even if Wisconsin does not impose taxes on your estate (or your loved one’s estate), it is important to understand the possibility of federal estate tax liability. For example, some estates with significant assets necessitate the filing of a federal estate tax return. Moreover, some estates incur taxes in other states, such as a decedent who owns a lot of real estate in another state.
It is crucial to understand the various financial effects of your estate plan, regardless of whether an estate tax return is necessary.