Is There a California Estate Tax?

A well constructed estate plan will include the implementation of tax efficiency strategies when estate tax exposure is present. You should certainly inventory your assets carefully when you are devising your estate plan so that you can determine whether or not you are exposed to death taxes. As we all know, there are federal taxes, and there are state-level taxes. There is a federal estate tax that can potentially impact Californians. This tax carries a $5.34 million exclusion until the end of this year. In 2015, the exclusion is going up to $5.43 million after an inflation adjustment is applied. You can leave unlimited assets to your spouse tax-free, but the exclusion is the amount that you can leave to others free of taxation. If you are transferring more than the amount of the exclusion, the federal estate tax looms large. The maximum rate of the tax is a rather attention-getting 40 percent. State-Level Estate Taxes There are some states in the union that impose state-level estate


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