Good news! As of 2024, California does not have its own estate tax. This means that estates of any value are not subject to state estate taxes.
However, it’s important to remember that the federal estate tax still applies. For 2024, the federal estate tax exemption is $13.61 million. This means that estates valued at less than $13.61 million will not owe any federal estate tax. Estates exceeding this threshold will be taxed at a rate of up to 40% on the amount that exceeds the exemption.
Here’s a summary:
- California Estate Tax: No tax for estates of any value.
- Federal Estate Tax: Applies to estates valued at $13.61 million or more in 2024.
Additional Considerations:
- Even if your estate is below the federal threshold, it’s still wise to consult with an estate planning attorney to discuss other important matters, such as:
- Minimizing your estate tax liability through various strategies.
- Creating a will and trust to ensure your assets are distributed according to your wishes.
- Appointing guardians for minor children and healthcare proxies.
We encourage you to schedule a consultation with Deetman Law Office to discuss your specific needs and develop a personalized plan to protect your loved ones.
Resources:
- Internal Revenue Service (IRS): https://www.irs.gov/individuals/file-an-estate-tax-income-tax-return (https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax)
- California Franchise Tax Board (FTB): https://www.ftb.ca.gov/ (Search for “estate tax”)
Disclaimer: This information is for educational purposes only and should not be construed as legal advice. Please consult with an attorney for guidance specific to your situation.
