Estate Taxes
Will your estate owe taxes? The answer depends on:- Your estate's gross value. Estate's over federal and possible state limits will owe taxes.
- Where you live. Almost half the states have their own estate or inheritance tax. See below.
- When you pass. Estate and inheritance tax rates can change annually so stay up to date.
What is the gross estate value?
The gross estate (before the modifications) may be considered to be the value of all the property interests of the decedent at the time of death. Real estate, life insurance payouts, retirement assets, jewelry and other personal property are a few of the many assets that are calculated in the gross estate.Quick to-know's
- Living trusts can be set up to double estate tax exemptions for married couples.
- If a spouse is not a US citizen and estate taxes are possible, contact an attorney regarding a Qualified Domestic Trust (QDOT).
- For estates over the limit, the deadline for filing the Form 706 is 9 months from the date of the decedent's death. The payment may be extended, but not to exceed 12 months, but the return must be filed by the 9 month deadline.
Federal estate tax exemptions & rates
2008 | $2 million | 45% | 2009 | $3.5 million | 45% |
2010 | Repealed | 0% |
2011 | $1 million? | 55% |
If your gross estate is over the above federal limits
For amounts between $0 and $10,000 over the federal estate tax limit, the tax liability is 18% of the amount.- Example: If you pass in 2009 and your gross estate value is $3,510,000, the estate tax due within 9 months would be $1,800.
Amount over federal limit $10,000 to $20,000 $20,000 to $40,000 $40,000 to $60,000 $60,000 to $80,000 $80,000 to $100,000 $100,000 to $150,000 $150,000 to $250,000 $250,000 to $500,000 $500,000 to $750,000 $750,000 to $1,000,000 $1,000,000 to $1,250,000 $1,250,000 to $1,500,000 $1,500,000 and above |
Taxes due $1,800 + 20% of the excess over $10,000 $3,800 + 22% of the excess over $20,000 $8,200 + 24% of the excess over $40,000 $13,000 + 26% of the excess over $60,000 $18,200 + 28% of the excess over $80,000 $23,800 + 30% of the excess over $100,000 $38,800 + 32% of the excess over $150,000 $70,800 + 34% of the excess over $250,000 $155,800 + 37% of the excess over $500,000 $248,300 + 39% of the excess over $750,000 $345,800 + 41% of the excess over $1,000,000 $448,300 + 43% of the excess over $1,250,000 $555,800 + 45% of the excess over $1,500,000 |
State estate taxes
Below is a list of states with estate taxes - please note this page attempts to be current as of 2009 but may be incorrect.
State Connecticut Delaware Illinois Indiana Iowa Kansas Kentucky Maine Maryland Massachusetts Minnesota Nebraska New Jersey New York North Carolina Ohio Oklahoma Oregon Pennsylvania Rhode Island Tennesee Vermont Washington DC Washington State |
Tax Type Estate Estate Estate Inheritance Inheritance Estate Inheritance Estate Estate/Inheritance Estate Estate Inheritance Estate/Inheritance Estate Estate Estate Estate Estate Inheritance Estate Inheritance Estate Estate Estate |
Exemption $2,000,000 $3,500,000 $2,000,000 $100 0 $1,000,000 $500 $1,000,000 $1,000,000/$150 $1,000,000 $1,000,000 $10,000 $675,000/$0 $1,000,000 $3,500,000 $338,333 $2,000,000 $1,000,000 $0 $675,000 $1,000,000 $2,000,000 $1,000,000 $2,000,000 |
Max. Tax Rate 16% 16% 16% 20% 15% 3% 16% 16% 16%/10% 16% 16% 18% 16%/16% 16% 16% 7% 10% 16% 15% 16% 9.5% 16% 16% 19% |
