Inheritance and Hawaii Taxes
Each year, beneficiaries receive their parent’s legacy and are left with important money decisions on what to do with an inheritance. If you don’t seek out experts, you could be making the wrong choices that could cause you to lose more of your hard-earned Hawaii income.
After you have taken the appropriate time to grieve and mourn your family member, you’ll need to take the appropriate steps of transferring the assets into your name.
At Estate Planning Consultants of Hawaii, we have helped our clients with these difficult decisions. Each client has their own plan, goals and income needs. After developing the right strategy, the solution can become more transparent for you and your family.
Will I Owe Estate Taxes and Inheritance Taxes
If your loved one passed away with a gross estate over $5.49 million (per individual), a Hawaii estate tax report must be filed. Calculate this value from real estate, investments, life insurance, and business interests.
Now most individual will not be subject to estate tax, but they will be subject to capital gains tax. It’s very important that you talk with a professional before you change the investment.
If you inherit an asset that produces income, you could have to pay capital gains taxes.
What if I Inherit a House
Depending on your parent’s wishes, if the house was in owned individually or in a trust. The home may need to go through a trust settlement process in order to get the house in your individual name.
Make sure you talk to a professional or you could end up paying more to the IRS after selling the home!
How to Invest an Inheritance
There are multiple strategies that can be implemented with investing your parent’s inheritance. Once a risk tolerance analysis is performed, difference solutions can be discussed. Not all situations are the same and it it’s important to not deviate from your needs and wants.
Let us help you tailor the appropriate strategy that will help your family today!