Advanced Underwriting Consultants

Question of the Day – May 8

Ask the Experts!

Here’s the question of the day.

Question:  How much does someone who dies in 2013 have to pay in estate taxes?

Answer:  The federal government imposes estate taxes at a flat rate of 40% in 2013.  The estate tax is imposed, for most decedents, on the value of the net estate passing to non-spouse beneficiaries in excess of $5.25 million.

In addition to the taxes imposed by the federal government, some 22 states also impose an estate tax or inheritance tax.  Depending on the decedent’s net worth, the identity of the heirs and the particular state involved, the rate might be as high as 20%.

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