Estate Tax Updates and Key Consideration

• Types of Estate Taxes

  • Federal estate tax

  • State estate taxes (only in certain states)

• Current Exemption Amounts

  • Federal: $13–$14 million per individual (2024)

  • State: Varies, e.g., Massachusetts ($1 million), New York ($6.5 million)

• Future Changes

  • Federal exemption set to sunset at the end of 2025, potentially lowering to $6–$7 million per person

  • Political influence will determine future exemption levels

• Married Couples

  • Can combine exemptions via portability, potentially shielding estates up to $26–$28 million

• Inheritance Tax & Step-Up Basis

  • Inheritance typically not taxable for recipients

  • Step-up in basis applies to real estate, eliminating capital gains tax if sold immediately

  • Some states still impose inheritance tax (e.g., Maryland has both estate and inheritance taxes)

• Legislative Trends

  • Most states are moving away from estate/inheritance taxes

  • Future tax laws remain uncertain and subject to change

  This video is for informational purposes only. As always please get professional help before making decision on how to protect your assets.