Friday, June 21, 2013

IRS is Claiming Whopping Amount in Taxes on Ex-Pistons Owner's Estate

It's not often you get estate planning news on ESPN.

The IRS is claiming around $2 billion (yes, with a "B") in unpaid estate taxes on ex-Pistons owner, Bill Davidson's estate. They claim the estate undervalued stock and didn't appropriately report lifetime gifts made to his spouse and daughter.

While you  may never be in a position to owe billions of dollars in tax, you may be surprised to learn that things like life insurance are included in taxable estates. Many people who are not millionaires may have million dollar estates. Particularly in Minnesota, which has, for the most part, a $1 million estate tax exemption, many people may be surprised to learn they might have a taxable estate. There are options to reduce or eliminate your liability, but you need to meet with an attorney before you die.