If I won property with minerals under lease, pass away in 2 years, and leave my children the land, will my children pay inheritance tax in LA and to the federal government?
Is their anyway process I can work on now, to avoid this if it will happen, or to lessen the amount due?
Someone recently suggested I take out enough insurance to cover any taxes due, due to the transfer of ownership. To see a tax professional to estimate taxes due under different scenarios then buy that amount of insurance + wiggle room, so that the heirs have the money to pay taxes and can receive the land and other properties without needing to shell out money or risking losing it to tax -misadminisration. Would this be a good idea?
Just a layman at this, but just got through with my father's estate. No federal estate taxes unless the net value is several million dollars. If there is a La. inheritance tax, the value of the LA portion was below the tax threshold. Real estate in La. will require an adjunct succession. To be sure check with a CPA in your state of residence and in LA. But you do need a will in insure that your estate is distributed as you wish.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More