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Law & Legal
  1. How to Qualify for a Medicaid Waiver
  2. Six Reasons Someone May Be Placed Under a Guardianship
  3. What Can Be Included in a Will?
  4. How Much Should You Put as a Down Payment on a House?
  5. 3 Assets That Can Fund a Trust
  6. Why You Should Have a Life Insurance Policy
  7. Is Real Estate a Good Financial Investment?
  8. S-Corp vs. C-Corp
  9. 5 Reasons Someone Might Disinherit a Child
  10. Benefits of a Testamentary Trust
  11. Steps on How to Sign Up for Life Insurance
  12. What is the Estate Administration Process?
  13. What Types of Government Benefits are Available for the Elderly?
  14. What is the Job of an Executor?
  15. What is a Simple Estate Plan?
  16. Why You Should Have a Will
  17. 3 Things You Need to Prepare Your Taxes
  18. Tips for Planning an Estate
  19. What is Electronic Notarization?
  20. Are There Requirements to Qualify for Medicaid Home Care?
  21. 3 Benefits of Tax Planning
  22. 3 Things to Know About Retirement Planning
  23. How Does Mental Illness Impact Your Estate Planning Process?
  24. What is a Lawsuit for Wrongful Death?
  25. What is The Tax Code?
  26. Guide to Become a Tax Advisor
  27. Does My Parents' Divorcing Impact My Inheritance?
  28. Guide to Understand When You Should and Shouldn't Buy a Home
  29. 3 Things a CPA Can Help With
  30. Tips to Maximize Your Tax Refund
  31. 3 Reasons You Should Have a Tax Accountant on Retainer
  32. Do Self-Employed Individuals Get Taxed Differently?
  33. What are Unclaimed Funds?
  34. 4 Things to Know About Surrogate's Court
  35. 3 Reasons Having Advance Directives is Important
  36. What are Estate Taxes?
  37. What is The Estate-Tax Exemption?
  38. Who Has to File Taxes?
  39. 3 Reasons You Should Have a Trust Protector
  40. Understanding Spousal Impoverishment
  41. Who Files Taxes For Businesses?
  42. Should I File My Taxes Using Turbo Tax?
  43. 3 Ways to Protect Against Financial Exploitation
  44. Who Qualifies for a Special Needs Trust?
  45. Guide on How to Write Off Business Expenses When Doing Your Taxes
  46. 3 Things Every Small Business Should Know
  47. Why Updating Your Will is Important
  48. What is the Probate Journey?
  49. What Happens if I Don't File My Taxes?
  50. Tax Accountant vs CPA
What is The Estate-Tax Exemption? {{ currentPage ? currentPage.title : "" }}

Owning a large amount of assets is usually considered a good thing. After all, it usually signifies that you’ve worked hard and have made a lot of money to be able to afford real estate and other assets included in your estate. Unfortunately, having a lot of wealth tied up in your estate can result in a hefty tax burden for your heirs upon death.

What Are Estate Taxes?

In the United States, some estates are subject to a federal estate tax that ranges between 18% and 40%. Some states also have their own estate taxes, meaning it's a good idea to partner with a local trust and estate CPA if you are an individual with a high net worth.

As an example, New York City residents can look for a Bronx trust and estate CPA, but you can search for a CPA in your area. Whether you’re in New York seeking out a Bronx trust and estate CPA or somewhere else in the country, the reason you want a CPA on your side is that your CPA may be able to help you find ways to save money on estate taxes, including through an exemption or trusts.

How Do Exemptions Work?

An estate tax exemption is available on the federal level for estates valued at less than $12.92 million in 2023. This means that estates valued under this amount are exempt from estate and gift taxes. Working with a trust and estate CPA may help you find ways to reduce the value of your estate by giving away assets as gifts or transferring ownership to a trust. There are legalities involved here, and these are what make it so important to work with a CPA.

The $12.92 million figure also counts as a lifetime exemption, meaning assets that you give away throughout your life count toward this exemption. If you gift over this figure during your lifetime, the difference may be taxable.

Disclaimer: The above is not financial advice. Always consult with a financial professional regarding taxes and estate planning.

Author Resource:-

Mark writes often about tax and estate planning. His articles may include topics like tax planning, estate planning, business accounting or any other tax service to help the people in needs. You can find his thoughts at estate planning blog.

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