What are death taxes?
What are death taxes? | Rebecca W. Geyer & Associates, PC | Compassionate Counsel for Every Generation | Contact Us Today | (317) 973-4555 | http://rgeyerlaw.com/ | 11550 N Meridian Street, Suite 200, Carmel, Indiana 46032
Much like income taxes, there are two levels of death tax which may be applied at the time an individual passes away. There's both a federal level and a state level. The federal level is known as the federal estate tax, and an individual is currently allowed to pass up to $5.45 million dollars free of federal estate tax. Any assets above this exemption amount, though, will be subject to tax, beginning at 29% and going up to 40% under current federal estate tax rules. States also sometimes have a state level of death tax. Many states over the last decade have actually gotten rid of their death taxes or estate. Indiana, for example, abolished its inheritance tax in 2013. If you live in a state which still imposes a death or an inheritance tax, you're going to want to consult with an advisor to determine if proper planning should be done to minimize those taxes at the time you pass away.