Family Issues

An estate is a separate entity from the deceased and from the executor who carries out the will. The estate must have a separate federal identification number. The estate will be assigned its own federal ID number after the executor completes IRS Form SS-4.

The IRS expects estate taxes to be paid within nine months after the date of decedent's death unless one exception applies.
The exception involves a decedent who owned a business that accounted for more than 35% of the total estate. In that instance, a formula established by the IRS may allow estate taxes to be paid over several years. Speak to your local CPA about filing Form 706.

The task of valuing your estate will be left to the executor of your will.
If you formed a living trust, the duties will be performed by the trustee. The executor or trustee might have to call in certain appraiser professionals for help.
A real estate broker or appraiser might be used to value your home.
The Internal Revenue Service requires that all estates be valued at the time of a taxpayer's death in order to determine whether any estate taxes are due.

The first step in determining the value of your estate is to add up the value of everything you own and then subtract it from the estate value, the expenses of settling the estate and making any non-taxable bequests. No federal estate taxes are assessed on estates valued at less than $5 million.
Included in your estate is your home and any rental property you may own, securities and other investments, retirement funds (401k, IRA's)you have saved and all your personal possessions.
Pending federal and state income tax refunds are also included. Many such items will automatically pass to your spouse and not be included in your estate if the property is jointly owned.
In addition, the size of your estate will be reduced by the money you owe, such as a mortgage on your home, burial expenses, the cost of settling the estate and other items.
Assets left to charity will also reduce the size of your estate.

Estate taxes can take a big bite out of what you would like to leave your heirs. Federal Estate taxes apply only to estates larger than $5,250,000 for the years 2013.
There are several strategies you can pursue to reduce or eliminate the tax bite. Speak to your local CPA or attorney about these strategies.
They may mention to you to consider making gifts. You can give up to $14,000 a year to as many people as you like, tax free. Together with your spouse, you can give up to $28,000 to each person. Also consider giving your life insurance policy to your wife, your child or put it in an irrevocable trust provided the assignment takes place more than 3 years before death. To keep the policy out of your estate, you cannot continue to pay the premiums.
The new owner has to pay them. Another strategy is to get married. No estate tax is levied on property given to a spouse. Of course, whatever is left (over $5,250,000) will be taxed in your spouse's estate when he or she dies.

Every estate gets a Federal Unified Tax Credit for the amount of tax that would be levied. In year 2013 the Federal Unified Tax Credit is $2,045,800 yielding a exclusion amount of $5,250,000 Million.
That is the limit that you can leave your heirs free of federal estate taxes. It is also known as the exemption equivalent amount.
The unified tax credit is cumulative. It includes the taxes due on taxable gifts that you have made over the course of your life (taxes on these gifts are usually not due until you die). Non-taxable gifts of up to $14,000 per person, per year are not counted against the federal unified tax credit.

One strategy to avoid Probate is through the use of a "Living" or Inter-vivos Revocable Trust. During the lifetimes of the individuals a Trust is created, husband and wife are both the Trustees of the Trust, so they have complete control of it. The Trust is amendable and can be changed at any time by the individuals who created it. When one or both individuals die there is no Probate, provided the individuals took the time while they were living to transfer all of their assets into their Trust. This entails the retitling of assets such as bank accounts, real estate, and stock brokerage accounts into the name of the trust. During their lifetimes, these individuals name who they want to be their trust's successor trustee. The successor trustee could be a family member, friend, an advisor or bank. When death occurs, the surviving spouse typically takes over as the successor trustee and manages the assets. Then when the surviving spouse dies, the successor trustee named in the trust takes over and distributes the assets according to the terms the individuals stated in their trust. There are also other strategies available. Speak to your local CPA or attorney for more details.

For the year 2013, 5,250,000 Million. State tax thresholds vary per state

In order to collect child support from your divorced husband, you must contact your local child support agency.