Inhearitance value $ wise of land to pay tax?

Nebraska

OK, I eventually stand to inhearit some land.

My parents did some estate planning. I asked them about it and they said at the time they did it, the value of the land was under the limit of where I would have to pay sizeable amount of inhearitents tax. This was indicated by their lawyer.

This was done roughly about 10 years ago. The value has increased. It is 800 acres. With the Bush tax cuts in place yet??????????????????????? I would like to know what that cap is on the land value, and if thats safe enough now days?

They delt with a lawyer at that time and Im sure it was correct then. Just wondering if it has changed any law wise, or if the value of that land would be over that limit. Apx. value of it is roughly $650K

Thanks in advance.

Shouldn't be any problem.

But pay attention to what laws are passed before the end of the year on this estate tax subject. Who knows what the inheritance laws will be starting next year. It'll be in the news, for sure.

Most of the talk is $3.5 million exemption. But, we'll see. Strange things do happen.

Wow oh wow!

I have heard of people having to sell off part of what they get just to pay uncle sam or the state. Which some ground around here can bring 5K an acre, being farmable and irrigated, instead of ranch land.

Correct me if Im wrong, but this would just include what I would inhearate then?

Because I do have machinery (tractors and other equipment) and livestock for assets. As well as liabilitys of course.

I'm very dumb on this topic, but then would I presently have to pay any tax at all then if they would die tomorrow?

Surely something and if so roughly how much would I be looking at?

TIA

The estate tax is based upon the value of the estate and is paid by the estate before any assets are distributed.

Assets that you own would not be part of your parents' estate.

As curb and kiawah mentioned, the federal estate tax is completely up in the air right now. But, if the value of your parents' estate is less than $1 million, then you should be safe.

Nebraska repealed its state estate tax for deaths occurring on or after 1/1/2007. Nebraska still has an inheritance tax. But for assets passing to a child, the rate is only 1%.

(In technical, and very simplified, terms, an estate tax is a tax on the value of an estate. An inheritance tax is a tax on the transfer of assets to heirs/beneficiaries.)

also, if the asset is placed in a/b trust, both parents can use their own exemption amounts.

you dont mention any other assets but this land, but it seems likely that they may have other assets that you may have an inheritance interest in.

Kinda remember the repealing of that. Im 33 now. Back then I proably heard about it, just didn't pay close attention to it.

I was wondering about the price you had to pay. I know you pay something. Our county board of supervisors if they run short on money they get surpluss from the inheritance tax fund. So I did know about it, just didn't know the percentage.

Ive got a brother and sister. I get the ranch and 2 tractors that they have left. The other 2 get the house in town and any insurance money. With what your saying Id have to include that as well. Rough estimate we would still be under $1 million.

Whats an A/B trust?

Also not that it matters or really pertains to this (I think) my folks are 84 & 78. My brother and sister are 20 and 18 years older than me. Neither one either have the financial ability or desire to operate the ranch. I have the cattle and drive to do it. Mainly they have helped them over the years and still are from time to time. Since they haven't had as much time to help me I got a bigger share of the assets. Besides they didn't want the place to get split up I guess. I do owe them some money. That shouldn't figure into this end of it. I figured if I don't have it paid off, when I inhearit it I can borrow against it to pay that off as well as any taxes due.

Thanks for all the info.