Most people shouldn’t fear federal “death taxes.” Only those with a fortune of $12.92 million or more (married couples have a federal estate tax threshold of $24.12 million) are subject to federal estate tax, and only a small percentage of Americans have accumulated such wealth (the figures are for 2023).
Additionally, there’s no federal inheritance tax to scare your heirs. (Death taxes are based on the estate’s overall value and paid by the estate, while inheritance taxes are paid by the beneficiary).
But even if your assets are below the threshold, a tax bill could be waiting for you. While some US states have eliminated or reduced their death taxes over the past decade to discourage wealthy seniors from relocating to more tax-friendly jurisdictions, there are 12 states and the District of Columbia that still impose an estate tax.
So, if you don’t know much about death taxes and live in one of the places listed in this article, beware. Read on to find out more!
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time for a Tea party again