Frequently Asked Questions (FAQs)

Taxes

What tax returns are necessary after someone dies?
Final 1040/540 The decedent’s final income tax returns (1041,541) for the period from January 1 until the date of death...

What are estate taxes?
Estate taxes are charged by the federal (and sometimes the state) government when the net value of a decedent’s assets...

Is my inheritance taxable?
As a general rule, no. However, if what you “inherit” consists in whole or in part of deferred income...

What is a “stepped-up” basis?
When an individual sells an asset, such as a stock, that is a taxable event; the gain, the difference...

What is a reassessment?
Under Proposition 13, and subsequent laws, property is reassessed on a change of ownership.