Will A Married Person Pay Estate Tax at Death?

Today, We’re going to be talking about the estate tax for a married couple. From previous blog, it said that if you have 11.5 million dollars of exemption as of today, which 11.49 but, it’s still 11.5 million dollars 2019 of federal estate tax exemption. 

But in California, there isn’t any so you don’t have to worry, but for federal there is. So if you have less than 11.5 million dollars you’re good. If you have over 11.5 million dollars, it’s 40% of every dollar over 11.5 million dollars.

So if you’re married, what happens? How much do you have? Well you have 11.5 for you, for one person and 11.5 for your spouse, so you have a total of 23 million dollars you could have without a problem. Anything over the 23 million dollars, it’s going to be taxed at 40%. One thing you should note, there is a law out there that allows one spouse to give the 11.5 million that he or she has to another spouse.

Now if you pass away with 11.5 million and if you have your spouse. You need to give it to your spouse, now she will have 23 million dollars of exemption to use when she passes away, it’s called portability and it’s a really good tool but this is the general concept of how it’s done for married individuals for the estate tax. 

Now just to piggyback off of this, less than a decade ago this exemption was one million per person, so a lot of people had to engage in something called advanced estate planning. Now that amount of people is much less, although it is still a high amount of individuals that need to engage in this. This law that brings it all the way up to 11.5 million dollars, plus inflation whatever it is, will end in 2025 when the tax law sun sets back to the original law and then it will start, it will be at five million dollars again unless again Congress changes it.

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