Estate Taxes

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Estate taxes, also known as inheritance taxes or death taxes, are taxes imposed by the government on the transfer of assets from a deceased person’s estate to their heirs or beneficiaries.

Estate taxes are typically assessed on the net value of the deceased person’s assets after any debts and expenses have been paid. The tax rate and exemption thresholds vary by country and jurisdiction.

In the United States, for example, the federal estate tax applies to estates with a net value of over $11.7 million for individuals and $23.4 million for married couples as of 2021.

Estate taxes can be a significant expense for some families, and careful estate planning is often necessary to minimize the tax burden on heirs and beneficiaries. Strategies such as trusts, gifting, and life insurance can be used to reduce or avoid estate taxes.

It is important to consult with a financial or legal professional to develop a comprehensive estate plan that takes into account the potential impact of estate taxes.

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