What are the estate taxes?

The estate taxes in Vermont are taxes that must be paid on the transfer of assets from a deceased person to their beneficiaries. These taxes are based on the estate’s total value, which includes all real estate, personal property, and investments. In Vermont, the estate taxes range from zero to 18%, which is calculated based on the size of the estate. For estates that are valued at or below $2.75 million, the tax rate is 0%. For estates valued between $2.75 million and $3.5 million, the tax rate is 8%. For estates valued between $3.5 million and $5 million, the tax rate is 12.5%. For estates valued over $5 million, the tax rate is 18%. In addition, there is a federal estate tax on estates valued over $11.58 million that is calculated separately from the Vermont estate taxes. This rate ranges from 18% on the first $11.58 million of estate value, to 40% for estates valued over $22.2 million. It is important to note that estate taxes are not always due on the full estate value. If the estate includes assets that are exempt from the estate taxes, such as certain gifts and life insurance policies, then the exempt assets are not factored into the taxable amount. Furthermore, there are a number of other deductions that can be taken to lower the taxable amount of the estate, such as estate administration costs and charitable donations.

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What are the estate taxes?

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