2013 Estate Tax Exemption is $5.25 Million
The 2013 estate tax exemption is $5,250,000 and the tax rate above that is 40%. The exemption is set to change with changes in the cost of living. In general, estate taxes are taxes imposed on the value of assets which you own when you die. Generally, if the net value of your assets passing to someone other than your spouse is more than the exemption (the “applicable exclusion amount”), there will be a tax payable.
This is a tax completely distinct from income taxes and other taxes. Note that if you own assets in a state other than California, or if you own assets outside the United States, then there can be additional state or foreign estate taxes. California does not impose a state estate tax.
For 2013, the estate tax exemption is $5,250,000 and the tax rate above that is 40%. The exemption is set to change with changes in the cost of living. In general, estate taxes are taxes imposed on the value of assets which you own when you die. Generally, if the net value of your assets passing to someone other than your spouse is more than the exemption (the “applicable exclusion amount”), there will be a tax payable.
This is a tax completely distinct from income taxes and other taxes. Note that if you own assets in a state other than California, or if you own assets outside the United States, then there can be additional state or foreign estate taxes. California does not impose a state estate tax.
If you have questions about the estate tax exemption, contact Anh Tran, an Orange County estate planning attorney at Modern Wealth Law to discuss your issues.
John Wong advises on all aspects of estate planning, probate, asset protection and trust administration. He believes that estate planning is about planning for life; while having protections in place should the unexpected occur.
