Estate planning can be a stressful and complex process, especially for those concerned about probate taxes in Virginia. Whether you’re planning for the future or dealing with a loved one’s estate, knowing what to expect can save you time and money.
In this blog, we’ll explain the basics of probate taxes, offering clear and practical insights. Our goal is to empower you with the knowledge you need to make informed decisions and ensure your estate plan aligns with your wishes.
What is a probate tax?
When someone passes away in Virginia, settling their estate often involves paying probate taxes. These taxes apply to most wills and target property within the state. However, there’s a silver lining for smaller estates: the state does not impose a probate tax for estates valued at $15,000 or less.
Moreover, there are specific assets exempt from this tax. These include the following:
- Property passing through a power of appointment
- Jointly held property with survivorship rights
- Insurance payouts to designated beneficiaries
- Bonds payable on death to a specific beneficiary
For Virginia residents, the tax encompasses real and tangible personal property within the state. It also affects intangible assets like bank accounts and stocks, regardless of location. Meanwhile, the state does not tax the intangible personal property of non-residents.
Meanwhile, tenancy in common (TIC) properties are subject to tax based on the deceased’s share. Property transferred via a will also falls under this tax umbrella.
Protect your assets correctly
While there are no estate taxes in Virginia, you may still have to pay probate taxes. By familiarizing yourself with these regulations, you can make informed decisions that will honor your wishes.
