What You Need to Know
💡Why This Calculator Matters
Estate taxes can take 40% of wealth above the exemption. Proper planning lets you pass more to heirs and causes you want to support.
👤Who Needs This
High-net-worth individuals, those with estates near the exemption threshold, or anyone doing comprehensive estate planning.
🎯Key Insight
The federal exemption is $13.61 million (2024) per person, but this is set to drop to ~$7 million in 2026. State estate taxes can kick in much sooner.
⚠️Common Mistake
Thinking estate tax only affects the ultra-wealthy. Business owners, real estate investors, and those with life insurance can easily exceed thresholds.
✅Pro Tip
Married couples can effectively double the exemption through portability. But you must file an estate tax return for the first spouse who dies, even if no tax is due.
📊Real-World Example
Scenario: $16 million estate, single person (2024)
Exemption: $13.61 million. Taxable: $2.39 million at 40%
Estate tax due: ~$956,000. Proper planning (trusts, gifting) could reduce or eliminate this.
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