What is estate tax?

Estate tax is a type of tax in California that is applied to the estate of an individual who has passed away. It is also known as the “inheritance tax” or the “death tax”. The estate tax is paid on the total amount of assets owned by the deceased, also known as the “taxable estate”. This includes real estate, cash, stocks, bonds, and other investments. The estate tax is collected by the California Franchise Tax Board (FTB). The amount of estate tax payable depends on the total value of the taxable estate. A higher value results in a higher estate tax. Tax rates can range from 0.6% to 16%. It is important to note that not everyone has to pay estate tax. In California, the estate tax threshold is $5.45 million. So, if the taxable estate is below this amount, the estate tax does not have to be paid. In addition to the estate tax, there may also be gift taxes, federal taxes, and state taxes that are applicable in certain situations in California. It is important to consult with an experienced lawyer if you are dealing with Trusts and Estates Law in California.

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