The Estate Tax rate, as of 2020, is 40% on assets transferred after death. This is a tax on the transfer of assets. While the Estate Tax rate is high, it does not apply to the majority of estates.
Currently, there is an Estate Tax exemption of $11.58 million per individual. If there is less than $11.58 million in assets at the time of death, there would be no Estate Tax due.
If married, it is possible to transfer an individual exemption upon death. This is known as “Portability” and enables a married couple to transfer over $23 million ($23,160,000) without paying Estate Tax.
For questions on asset protection, estate planning, probate, or trust administration, feel free to contact, Elliott Stapleton to schedule an initial consultation.