As you prepare your estate in Iowa, you are likely to look for all the tax breaks you can get for your heirs. Many times people may try to make adjustments or changes to their plan to ensure their heirs are not left with a huge tax bill. After all, you want to leave behind something of value and not stick your loved ones with a tax debt. Knowing what to do with your estate, though, requires knowledge of state and federal tax laws, and federal estate tax laws have recently changed.
As of January 1, 2018, Marketwatch explains the federal death taxes have changed. Asset values still increase to the value at the time of your death, but you now have a higher asset value you can have before taxes are paid. If you are married, you can have up to $22.4 million in assets. If you are single, you can have up to $11.2 million. Once your assets go over those amounts, you are taxed.
It is very important to understand the specifics of the law, though. In addition, you have to own the asset at your time of death for it to be considered your asset. For example, if you own a house worth $2.3 million, but you sign that house over to your son before you die, he would then own it. It would not be a part of your estate. He would not get the tax breaks that come with estate taxes. This information is for education only and is not to be taken as legal advice.