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Only one son. If I were to die and had a house with 500,000 in equity and $800,000 in other assets how much tax would my son pay?
He would be the only one getting my assets and the Will would clearly state this.
I don’t want thousands or tens of thousands spent on lawyer fees after I die
There would be no federal estate tax due. The the threshold for federal estate taxes is $11.7 million. That may change soon but you are not close to any proposed federal estate tax threshold.
Some states have estate or inheritance taxes. Most of those have an exemption above 1.3M but not Massachusetts.
For bank and brokerage accounts you can fill out a TOD (transfer on death) form and put your son as a beneficiary. Then the accounts will go directly to your son and avoid probate.
You can also place your home into a living trust. This will allow your son to receive the home without going through probate. This is very important since probate is very slow and expensive in some states.
In California one can also do a TOD transfer for a house.
There would be no federal estate tax due. The the threshold for federal estate taxes is $11.7 million. That may change soon but you are not close to any proposed federal estate tax threshold.
Some states have estate or inheritance taxes. Most of those have an exemption above 1.3M but not Massachusetts.
For bank and brokerage accounts you can fill out a TOD (transfer on death) form and put your son as a beneficiary. Then the accounts will go directly to your son and avoid probate.
You can also place your home into a living trust. This will allow your son to receive the home without going through probate. This is very important since probate is very slow and expensive in some states.
In California one can also do a TOD transfer for a house.
Note that if there's a conventional inherited IRA, he's now got ten years to spend it down and will pay taxes on that spend down.
However the transfer of such account(s) is pretty straightforward- it's a transfer to the designated beneficiary and doesn't have to go through probate and TurboTax and the like can handle his tax situation with that every year.
Transfer on death for bank accounts and a living trust for my home. Easy enough!
Yeah, the living trust seems to be the better way in most cases over the TOD for real estate. The nice thing about the living trust is you do not have to record a new deed if you want to change your beneficiary. And it will always escape probate whereas the TOD can end under certain events and the property will revert to probate. You do not want CA property to go thru probate.
Only one son. If I were to die and had a house with 500,000 in equity and $800,000 in other assets how much tax would my son pay?
He would be the only one getting my assets and the Will would clearly state this.
I don’t want thousands or tens of thousands spent on lawyer fees after I die
There is some generic advice getting thrown around here and I’m not saying it’s bad but you could throw 500-1500 bucks at this and get actual legal advice and execution on what you need to do here
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