What is the estate tax exemption and how is it calculated?
Broadly speaking, the estate tax is calculated on the amount in an individual’s estate at the time of their death. In 2012, if an individual’s estate is larger than $5,120,000 it will be taxed at a 35% marginal rate. If a married couple dies in 2012, they can have an estate worth $10,240,000 before a 35% marginal rate is applied. These aforementioned amounts are known as the estate tax “exemption.”
The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.
Additional Estate Tax Articles
- What is the death tax and how does it affect estate planning?
- What is gift tax and how does it apply to making lifetime gifts?
- Why is there a key difference between estate tax in 2012 and 2013?
- Are Non-Resident and Resident Aliens treated the same as US residents for the purposes of transfer taxes?
- Why should I plan my estate in 2012?
- Do I need an attorney to help with my estate planning?