In Colorado, there are only two taxes you need to be concerned about upon your death; the federal estate tax and income tax. Your estate needs to exceed the value of $5,340,000 in order for estate taxes to be owed (which means, for about 99.86% of us, this isn’t an issue). And income tax is only owed by your beneficiaries if you would have owed income tax. The best examples of this are (1) filing your final 1040 for the year you died, and paying any income taxes owed that year and (2) owing income tax on distributions made from a traditional (i.e., non-Roth) retirement plan. Overall, taxes are NOT a big issue.
Posted on: Tue, 09 Sep 2014 14:49:58 +0000
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