Gift and Estate Tax Law in Little Rock
Based on the amount of taxes paid by individuals, the tax burden in Arkansas is estimated to be 14th in the country. Because of this, it is especially important to consider taxes when dealing with the many complex issues of your estate. The attorneys at the Plastiras Law Firm are well versed in the issues surrounding Little Rock estate tax law and Little Rock gift tax law.
Even though Arkansas follows most states by tying both estate and gift taxes to that of the federal tax system, the firm understands the associated local issues and knows how to protect the estate that you built over a lifetime.
Gift tax planning in Little Rock
It is not uncommon for people to confuse the Little Rock gift tax with the inheritance tax. Actually, the inheritance tax is imposed by some state governments on the heirs' privilege to receive the assets of a deceased person. In contrast, the gift tax is usually paid by the donor on any individual gift over a fixed sum ($13,000 as of January 2009). Gift taxes are imposed on living donors.
According to the Internal Revenue Service (IRS), gift tax laws are considered to be some of the most complicated laws in the IRS code. Anyone dealing with gift tax law in Little Rock needs to be aware of how different types of gifts can be treated differently, the tax differences between giving to a spouse versus other recipients, when the tax can be paid by the recipient, and a host of other issues.
The IRS recommends the use of an estate tax practitioner with considerable experience in this complex field. At the Plastiras Law Firm, our Little Rock tax planning law firm has extensive experience dealing with all aspects of Little Rock gift tax issues, and we remain focused on ever-changing tax laws.
Estate tax in Little Rock
As of 2005, Arkansas phased out its pick up tax, which was based on the states own tax laws and equaled a portion of the federal estate bill. The Arkansas pick up was essentially replaced by the provisions of a federal law, the Economic Growth and Tax Relief Reconciliation Act (EGTRRA).
But, EGTRRA is due to be phased out in 2011, and a pick up tax in Arkansas will return. Meanwhile, even though Arkansas does not impose its own tax, federal estate taxes still affect local tax returns.
Not all people realize that their right to transfer property after death is taxable. Whether it is imposed at the federal level or locally as an estate tax in Little Rock or within the state of Arkansas, failure to plan or account for these taxes can result in Little Rock tax litigation.
The Little Rock estate tax attorneys at the Plastiras Law firm keep up with all federal and state tax laws and consider all current and future changes when setting up client estates in the most tax advantageous way. If your estate tax plans have gone awry, we know how to protect your rights in estate tax litigation in Little Rock to get your plans back on track.
We can also help you plan for a Charitable Lead Trust. Let us know if you need more information.
Better planning for a better future™
Let the Plastiras Law Firm help you achieve it. Call us at 501-859-0986 or contact us by email.
