The current Federal estate tax exemption in 2012 is a little over $5 million. If congress doesn’t act soon, then the estate tax exemption will revert back to just over $1 million in 2013.
Currently the top Federal estate tax rate for 2012 is 35%. This is scheduled to revert back to 55% in 2013. Yikes!!
Washington State’s estate tax exemption for 2012 is 2 million dollars, and our State’s estate tax can be as high as 19%, which just so happens to be the highest state estate tax rate in the country according to this recent article in SmartMoney.
Twenty eight states have no inheritance tax according to this recent article in Forbes.
There are some great strategies to possibly avoid some of that big tax hit.
If you are a high net worth individual, you may want to consult a qualified adviser to learn how to structure your assets to protect your estate from excessive taxation.
How do you feel about these estate taxes?