2.22.2024

A Unique Way to Help Your Family After You Die

 


This guest post is from Madison LaRowe, Regent Law 2L: 

    A topic that I came across that I found interesting was how family cemeteries can help reduce property taxes in Virginia. According to Article X, Section 6(a)(3) private or public burial grounds are exempt from taxation if they are not operated for profit. The property would be excluded from state and local tax, and it would also be excluded from inheritance taxes. This is also codified in section 58.1-3606(A)(3) of the Virginia code.

    Even if you are allowed to have a private cemetery that can get you a tax cut, there are restrictions in place for cemeteries that must be observed for the cemetery to be allowed. Section 57-26 lays out such restrictions, with the main one being that the cemeteries must be authorized and subject to the zoning ordinances of the governing body where the cemetery will be located. These ordinances will likely include restrictions as to how far the burial must be from residences on the property or how far the burial must be from land owned by the government which have wells located on them. Often a document containing the burial plot depicted on a map of the property will have to be submitted with the appropriate government authority for the private cemetery to be approved and to receive tax exempt status.

    I thought this was interesting because it can also be looked at as a way to give to your family after you pass on. By allowing your family to bury you on your family’s property rather than a public cemetery they could have less property tax and that piece of the property would not be subject to inheritance taxes. I just thought this was a unique way to give something to your loved ones after you die.

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