Housing prices have risen dramatically since the housing crash of 2008. This has created wealth amongst many Americans and that wealth is being passed down to the next generation. The average inheritance has only risen by around $15,000 in three decades, but they have more than doubled for some Americans.
In this article, we’ll go over inheritance and some of the statistical studies we referenced.
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Average legal fees for settling an estate
For estates of $40,000 or less, the average attorney fee is $1,500. For estates between $40,000 and $70,000 the estate attorney fee raises to $2,250. For estates between $70,000 and $100,000: $3,000. For estates between $100,000 and $900,000: 3% of the estate’s value is an average amount of money for attorneys to charge. This ads up to hundreds of millions of dollars in probate fees per year that Americans end up paying.
How much do Americans inherit on average?
That is a hard question to answer because outliers with an exuberant amount of money tip the scales. Most Americans are not extremely wealthy, however, if we look at the top 1%, wealth accumulation is “staying in the family.”
Americans inherited $427 billion in 2016, the most recent data available, up 119% from 1989 even after adjusting for inflation.
-Los Angeles Times
But, even the Americans that have accumulated mass amounts of wealth, might not be passing as much of it down as they would like.
Estate And Inheritance Taxes By State
States with an estate tax:
- New York
- Rhode Island
- Washington (state)
States with an inheritance tax:
Estate and Inheritance Tax
There are millions of dollars in unclaimed inheritance
There are millions of dollars in the united states that have been forgotten and are unclaimed, waiting for a home. of forgotten funds waiting to be claimed. More than 8% of American adults are millionaires. When they pass away the assets go to the designated beneficiary or they go through probate. Many times other heirs have passed away or they are not aware of the financial standing of the decedent and the funds end up forgotten. You can search for unclaimed inheritance assets at www.Unclaimed.org, the website of the National Association of Unclaimed Property Administrators (NAUPA).
The Biden Inheritance Tax Plan
Wealthy families could face combined tax rates of as much as 61% on inherited wealth under President Joe Biden’s tax plan, according to recent analysis and tax accountants.
Americans are becoming more concerned with inheritance tax laws
We conducted a search for inheritance-related queries using google search trends. We found that search volume for inheritance tax laws and probate related search terms has doubled in the past two years.
If you are concerned about inheritance, an estate planning attorney can help
If you are concerned about passing your inheritance down to your heirs than an estate planning attorney can be a great asset. Protecting your assets so that they incur the smallest amount of attorney’s fees and taxes is a skill that estate planning attorneys have. If you find yourself already in probate, then you can learn more about the probate process in our articles or receive early inheritance funding.