Tax Exclusion available for Surviving Spouse
October 22, 2011 // Posted by: creditrisk // Category: Personal Finance
As against the single status of a person (when the responsibility of his investments rests on his own shoulders), a marriage changes his economic status. A house is a major robber when it comes to paying taxes. Even when a partner dies, a considerable tax is deducted when his will transfers the property over to his surviving spouse. This liability can be dealt with wisely when a proper finance management is done by both heads. This kind of tax totally depends on the face value (when the partner died) of the property in picture. Many policies limit the tax free transfer to a condition wherein the surviving spouse does not marry somebody else.
In special cases, when the property rate goes above $5 million, tax is calculate only on the difference above the $5 million limit. A good financial planning may help in preventing the critical after death tax issues.