What are the estate taxes?

Estate taxes in California are taxes imposed on the estate of someone who passes away. The amount of the estate tax is determined by the size of the estate and the type of assets included in it. The state of California imposes an estate tax on estates that are worth more than $3.5 million. For estates worth less than $3.5 million, there is no estate tax imposed. However, if the value of the estate is greater than $3.5 million, the estate tax is imposed on the amount that exceeds $3.5 million. For example, if the estate is worth $4 million, then the estate tax is imposed on the difference of $500,000. The California estate tax rate is based on the federal estate tax rate and is calculated as a graduated rate. This means that the rate increases from lower to higher amounts of the taxable estate. The current rate starts at 18 percent and increases up to 40 percent for the highest amounts of taxable estates. In addition to the estate tax, the federal government also imposes an estate tax of 40 percent on estates worth more than $11.2 million, which is imposed on the amount exceeding the exemption amount. When an estate is created, the executor of the estate is responsible for filing an estate tax return and paying the taxes imposed. When tax returns are filed, they must be filed with the Franchise Tax Board by the due date, which is usually nine months after the date of death.

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