Taxes are an important consideration in distributing your estate because the money your estate pays in taxes will not be available to your heirs. Each estate is allowed a federal estate tax exclusion, an amount that can pass transfer-tax-free, either through lifetime gifts or at death. The American Taxpayer Relief Act of 2012 extended the federal estate tax with a top tax rate of 40 percent. In 2024, only estates valued at $13.61 million (or $27.22 million for some married couples) or more may be subject to the federal estate tax. If upon your death the total value of your estate is less than the applicable exclusion amount, no federal estate taxes will be due.
You can use this calculator to estimate the taxable value of your estate and the approximate amount of federal estate taxes that could be owed.
Based on your estimates, these hypothetical results show the amount of federal estate taxes that could be owed on your estate.
Are you comfortable with the amount you could pay in federal estate taxes? Keep in mind that many states and the District of Columbia have their own estate or inheritance taxes, or both, and many have exclusions less than the federal exclusion. There are steps you may be able to take to help reduce your estate tax burden. Review your individual situation and develop a strategy to help reduce your estate tax liability and leave more money to your heirs.
This is only an estimate of the federal estate taxes that could be owed on your estate.
This hypothetical example is used for illustrative purposes only. Actual results will vary.
This information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek guidance from an independent tax or legal professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.
This material was written and prepared by Broadridge Advisor Solutions. © 2024 Broadridge Financial Solutions, Inc.
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