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Estate tax in Idaho?

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My family resides in Idaho and probably will until they pass away. What is the estate tax rate in Idaho, if any? Also, what happens with a trust when a person dies and the executor is not a member of the family? Will that person have to assess the estate or will the attorney who helped my family set up the trust do that and give instructions to the executor?

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42 minutes ago, Phenomicon said:

What is the estate tax rate in Idaho, if any?

 

Idaho has no estate tax according to the Idaho State Tax Commission.

 

See:

 

https://tax.idaho.gov/i-1101.cfm

 

42 minutes ago, Phenomicon said:

Also, what happens with a trust when a person dies and the executor is not a member of the family? Will that person have to assess the estate or will the attorney who helped my family set up the trust do that and give instructions to the executor?

 

It's the executor (actually called "trustee" of the trust) that handles the administration of the trust assets.

 

It would be the trustee that could seek assistance from a lawyer of his choice. The trustee has no obligation to use the lawyer who set up the trust although it might not be a bad idea. Still, it's the trustee's choice or to not use a lawyer at all if he feels capable.

 

 

 

 

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20 hours ago, Phenomicon said:

What is the estate tax rate in Idaho, if any?

 

Do you not know how to use Google?  Took me about 6 seconds to learn that "Idaho has no gift tax, no inheritance tax, and its estate tax expired in 2004."

 

 

20 hours ago, Phenomicon said:

what happens with a trust when a person dies and the executor is not a member of the family?

 

Your question doesn't make a lot of sense.  For starters, an executor is a person who administers the estate of deceased person, and a trust is administered by a trustee.  That being the case, the identity of the executor of a deceased person's estate should have no impact whatsoever on any trust.  Second, it's not clear what the relationship is between the trust and the deceased person.  Are we to assume that the hypothetical deceased person created this trust while he/she was alive?  Even if so, why would you think that that it would matter in the slightest whether the executor or trustee is or isn't "a member of the family"?  The trust will (or should) be governed by the terms set forth in the trust instrument, and the estate will (or should) be administered in accordance with the terms of the will or the applicable intestate succession law.

 

 

20 hours ago, Phenomicon said:

Will that person have to assess the estate or will the attorney who helped my family set up the trust do that and give instructions to the executor?

 

I'm not sure who "that person" refers to, and we need to go back and discuss some basics.

 

One of the most common reasons (and possibly the most common reason) why folks create trusts is to avoid formal probate, and part of a standard estate plan where a trust is created is a "pour over will."  A pour over will says basically that the deceased bequeaths anything not already in the trust to the trust.  If a deceased person held most of his/her assets in trust and had a pour over will, then formal probate isn't needed and there will be no executor or estate to "assess."  As far as the trust, it is common for a person who creates a trust to be the trustee while he/she is alive and then, when he/she dies, someone else becomes trustee.  If the trustee is someone other than the deceased, then he/she presumably already has control of most of the trust assets and will only need to take possession of assets subject to the pour over will.  If a new trustee is coming into place, then he/she will have to "assess" and take possession/control of the trust assets.  In my opinion, being a trustee is not a good do-it-yourself job for most folks, so the trustee should hire an attorney (costs are payable by the trust).  Whether that is the attorney who helped set up the trust or otherwise doesn't matter.

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Hi @Phenomicon

 

Looks like you've gotten some great input from the community in response to your post! you can check out this blog post, which explores the role of the trustee to further understand the function of that individual (who need not be related to the grantor). As others have mentioned, Idaho has no estate tax.

 

Let us know if you have additional questions for the community!

The FindLaw.com Team

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I understand the role of the trustee in a trust. My family is trying to avoid a prison from taking "room and board" fees when I am released. I just wanted to know if I needed to talk to the trustee, who is a family friend and will handle the money once my mother passes. The trust will go into effect at that point. I don't believe my mom has it set up yet but doesn't let me in on a lot of the details of how it will be run, which is why I came to you all with questions. Thanks!

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13 hours ago, Phenomicon said:

My family is trying to avoid a prison from taking "room and board" fees when I am released.

 

Taking them from whom?  I'm not sure what this has to do with trusts created by any of your family members or any of their estates.

 

 

13 hours ago, Phenomicon said:

I just wanted to know if I needed to talk to the trustee, who is a family friend and will handle the money once my mother passes.

 

Talk to him about what?  If you are becoming or will become obligated to pay "room and board" fees as a result of your incarceration and are entitled or become entitled to receive an inheritance or money from a trust, then that money will be subject to your debt.  Also, since you said that you "don't believe [your] mom has [a trust] set up yet," then there is no trustee to speak with.

 

 

13 hours ago, Phenomicon said:

I don't believe my mom has it set up yet but doesn't let me in on a lot of the details of how it will be run, which is why I came to you all with questions.

 

We can only answer general questions about the law and, if you want to ask questions based on actual situations, we need clear facts, and it appears you don't know all of the relevant facts.  If your mother has concerns about your share of any trust being garnished to pay your debts, then that's something about which she ought to consult with a local attorney at or before the time she creates the trust.

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