As if it isn’t enough that the federal government wants to take a piece of your estate when you pass on, it’s likely that the state you live in — or even just own property in — wants to take its share as well. In certain states, it’s possible that between federal and state taxes, your estate could wind up giving more than half of its overall value to the government.
It’s easy for people to brush this off by saying, “Well, only 1% of the population is affected,” but if you’re one of the estimated 3 million individuals who will be impacted, it certainly doesn’t feel like a small problem. That’s why at Howard Kaye, we specialize in minimizing estate taxes for our clients, so your heirs can enjoy the funds you’ve amassed in your lifetime.
Currently, the federal government allows an exemption of $5.49 million per individual estate. Even if your estate is under that amount, that doesn’t mean you’re free and clear of estate taxes because many states have much lower exemptions. What’s more, your heirs may face inheritance taxes for property or money they receive from your estate. Currently, 14 states and Washington, D.C. have state-level estate tax and six states have an inheritance tax. Maryland and New Jersey residents are the hardest hit because these states have both.
Below is an at-a-glance resource that can tell you about estate taxes in each state. Click on your individual state for more information about specific estate tax laws that may impact your heirs. For guidance in estate planning to maximize your legacy, contact a life insurance advisor at Howard Kaye by calling 800-DIE-RICH today.
|Estate Tax?||Inheritance Tax?||Estate Tax Threshold||Maximum Tax Rate|
|Maryland||Yes||Yes||$3,000,000||16% and 10% resp.|
|New Jersey||Yes||Yes||$2,000,000||16% for each|