What are the taxes on an estate?

In California, the taxes on an estate depend on the total value of the estate. For estates valued at less than $675,000, there is no estate tax; however, the beneficiaries of the estate may have to pay taxes on the money they receive. For estates valued at more than $675,000, the beneficiaries may have to pay state and federal taxes. State taxes for California are based on the adjusted taxable estate value. This amount is determined by adding up the gross value of the estate, subtracting any debt, deductions and allowable credits and subtracting the $675,000 exemption. For estates valued below $10 million, the maximum marginal rate is 16%. For estates over $10 million and up to $11 million, the rate is 18%, and estates over $11 million will be subject to a rate of 19.8%. In addition to California state taxes, there is also a federal estate tax. This is based on the value of the estate minus any debt and deductions. For estates valued up to $11.58 million, there is a 40% tax rate applied. Anything over $11.58 million will be subject to a tax rate of up to 40%. In summary, the taxes on an estate in California depend on the value of the estate and the type of taxes applied. Beneficiaries of an estate valued at less than $675,000 may not have to pay taxes, but estates valued higher than this will be subject to state and federal taxes.

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