Death Taxes

Death taxes are taxes levied on the transfer of assets at death. They are typically imposed at the federal and state levels, and can be quite complex.

There are two main types of death taxes: estate taxes and inheritance taxes. Estate taxes are levied on the value of the entire estate, regardless of who inherits it. Inheritance taxes are levied on the amount of property that each heir receives.

The federal estate tax is levied on estates with a value of more than $11.7 million for individuals and $23.4 million for married couples. The tax rate starts at 18% and increases to 40% for estates worth more than $12.06 million for individuals and $24.12 million for married couples.

The federal estate tax is not the only death tax that you may have to pay. Many states also have their own estate or inheritance taxes. The rates and thresholds vary from state to state, so it is important to consult with a tax advisor to determine if you will owe any state death taxes.

Death taxes can be a significant financial burden, and it is important to plan ahead to minimize your liability. There are a number of strategies that you can use to reduce your estate tax bill, such as gifting assets during your lifetime, using life insurance, and setting up trusts.

If you have any questions about death taxes, it is important to consult with a tax advisor. They can help you understand your options and develop a plan to minimize your liability.