How do I calculate estate taxes?

Estate taxes in North Dakota are calculated based on the value of the estate. The estate is the total value of a person’s property and possessions at the time of their death. This includes the home, cars, investments, cash, and anything else owned by the decedent. To calculate the estate taxes due, the total value of the estate is calculated and then compared to the state’s estate tax exemption, which is $5 million in 2020. If the value of the estate is more than $5 million, then the amount above the $5 million is taxed. The rate of the estate tax in North Dakota varies depending on the value of the estate. The first $1 million is taxed at 10%, the next $181,000 is taxed at 13%, the next $119,000 is taxed 15%, and the next $1 million is taxed at 22%. Any amount over $2.3 million is taxed at 36%. To calculate the total amount of taxes due, all the amounts above $5 million must be multiplied by the corresponding tax rate. For example, if the total value of the estate is $6 million, then the amount above $5 million ($1 million) is taxed at 10%, so the total amount of estate taxes due would be $100,000. After the taxes have been calculated, the decedent’s probate attorney must then be contacted to explain the details of the estate tax and to make sure all the taxes are paid on time.

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