What Is the Difference Between an Inheritance Tax and an Estate Tax?

You should educate yourself about taxation when you are devising your estate plan. People sometimes have misconceptions, and we will provide clarity in this blog post. Federal Estate Tax There is an estate tax on the federal level. We practice law in California. Some states have state-level estate taxes, but there is no estate estate tax in California. However, if you own valuable property in a state that does have a state-level estate tax, the tax in that state could be a factor for you. At the present time, the federal estate tax exclusion is $5.43 million. This is the amount that you can transfer before the estate tax would become applicable. There can be annual adjustments to account for inflation, so you will probably see a slightly higher figure year-by-year. We should point out the fact that there is an unlimited marital estate tax deduction. You can transfer any amount of property to your spouse free of the estate tax, as long as your spouse is an American citizen. You would b


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s