How Much Will You Pay in Estate Tax? The Estate Tax Exemption Explained
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Effective estate planning not only leaves a legacy for your loved ones, but it also addresses financial obstacles that present themselves during or after the transfer of wealth — like the estate tax. California has not had its own estate tax since 1982, but the federal estate tax is 18% to 40%. The value of your estate and whether you have effectively planned for the tax exemption will determine whether you face that tax. WHAT IS THE FEDERAL ESTATE TAX EXEMPTION? The federal estate tax exemption provides an avenue to avoid taxes on the transfer of your property through your estate. This tax would be taken straight out of the value of your estate before it ends up in the hands of any chosen beneficiaries. For 2023, the estate tax exemption is $12.92 million for individuals and $25.84 million for married couples. That means any estate valued at or below $12.92 million
for an individual who dies in 2023 will be exempt from the federal estate tax. HOW CAN YOU CALCULATE YOUR TAX BURDEN? If your estate exceeds the estate tax exemption in a given year, only the amount above the exempted limit will be taxed. A percentage of that amount will be taken in taxes, and after $10,000, a “base tax” will be applied on top of the tax. To see a full list of tax rates and base taxes
For example, if you have an estate worth $13.5 million in the year 2023, your federal estate tax would be calculated as:
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$13.5 million (your estate value) – $12.92 million (federal estate tax exemption) = $580,000 (your taxable estate) 37% of $580,000 (because it falls within the $500,001 to $750,000 range) = $214,600 $214,600 + $155,800 (the base tax for the $500,001 to $750,000 range) = $370,400 in taxes paid on your estate
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You can see how quickly this tax adds up without proper strategy. At The Law Offices of Tyler Q. Dahl, we have the expertise to create that strategy for you, maximize your exemption, and protect your wealth.
Cod and Asparagus Bake
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Inspired by TasteofHome.com
This recipe is quick to make and perfect for busy weeknights when eating healthy seems impossible. The buttery cod is low-fat and a great way to include healthy omega-3 and omega-6 fatty acids in your diet.
can create a precious gift for your children, grandchildren, and other loved ones that will preserve your memory for decades to come.
Ingredients • Oil for baking pan • 4 4-oz cod fillets
• 2 tbsp lemon juice • 1 1/2 tsp grated lemon zest • 1/4 cup grated Romano cheese
“Our death is not an end if we can live on in our children and the younger generation. For they are us; our bodies are only wilted leaves on the tree of life.” –Albert Einstein
• 1 lb thin asparagus, trimmed • 1 pint cherry tomatoes, halved
Directions 1. Preheat oven to 375 F. In a 15x10x1-inch baking pan brushed with oil, place cod, asparagus, and tomatoes. 2. Brush cod with lemon juice, then sprinkle with lemon zest. Sprinkle cod and vegetables with Romano cheese. Bake until fish flakes easily with a fork, about 12 minutes. 3. Remove pan from oven; preheat broiler. Broil cod mixture 3-4 inches from the heat source until vegetables are lightly browned, about 2-3 minutes.
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