Estimate federal estate tax and state inheritance tax with exemption thresholds, marital deduction, and trust scenarios.
Federal estate tax and state inheritance tax measure different liabilities, and this calculator places both estimates in one scenario. Enter the estate amount and relevant exemption assumptions, account for a qualifying marital deduction, then compare outcomes involving a trust or different heirs. It provides an estimate rather than a tax-return calculation. The point most often missed is that a zero federal estimate does not automatically mean zero state tax: state inheritance rules can use a different threshold and can vary with the beneficiary's relationship to the deceased.
The federal side applies the entered estate figures, qualifying marital deduction, and exemption threshold to identify the amount exposed to federal estate tax. The deduction concerns qualifying property passing to a surviving spouse. The result is a planning estimate, so it should not be treated as the tax shown on Form 706 or as confirmation that filing is unnecessary.
The state inheritance estimate considers the selected jurisdictional assumptions and beneficiary relationship because inheritance tax can depend on who receives property. Trust scenarios allow comparisons between different arrangements, but the selection does not establish a trust's legal or tax treatment. Actual treatment depends on the trust terms, retained powers, asset ownership, governing law, and other facts.
The two taxes have separate tax bases, exemptions, and rules. Federal estate tax is imposed on the taxable transfer by the estate, while a state inheritance tax can depend on the amount received and the recipient's relationship to the deceased. Falling below the federal exemption therefore does not, by itself, eliminate a possible state liability.
No, not automatically. Inclusion can depend on whether the trust is revocable, which rights or powers the deceased retained, who owned the property, and how the transfer was structured. Use the trust setting as a scenario comparison, not as a determination that assets are excluded or that a particular trust qualifies for a deduction.
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