How to Avoid Inheritance Tax on Property
When you pass on and leave property to your loved ones, the last thing you want is for them to have to pay inheritance taxes on that property. When you think property you normally think about real estate. In reality though, anything that you own including your finances are part of your property and would normally be taxed when inherited.
- Think of all the things you will be leaving to your loved ones. This should include real estate, money, vehicles, etc.
- Decide which loved ones, if there are more than one, should get each property when you pass.
- Use a quitclaim deed when leaving real estate to someone. Add the person you wish to leave the property's name to the deed. In the deed be sure to add “as joint tenants with rights of survivorship.” With this person added to your deed as a joint owner in this way, they will have rights to the property if you should die. Doing it this way will avoid any inheritance tax.
- Change any vehicle titles that you have and wish to leave to someone else. Do this by adding the name of the person you wish to leave it to as a joint owner of the vehicle. In the event that you should pass, the vehicle will legally be theirs. This should avoid any inheritance taxes.
- Using a deed similar to the one you used for your real estate, you can give survivorship of your finances to a loved one. List your loved one as a contingent owner after your death on any of your accounts. This will allow them to have the money tax free when you are gone.
- Speak with a lawyer who specializes in the making of a will. This way you can be certain everything is done legally, and your loved ones can avoid paying inheritance tax.