The 2018 federal exemption against estate and gift taxes is $5,600,000 per person. The current federal estate tax rate 40% for estates that exceed the exemption amount. The federal gift tax annual exclusion increased to $15,000 per person per donor. This is a $1,000 increase to annual exclusion amount, which had been stuck at $14,000 since 2013. The State of Arizona has no inheritance tax or estate tax. However, if you live, own property, or have beneficiaries, in one of the 17 states or the District of Columbia that levy separate estate and/or inheritance taxes, your estate or its beneficiaries may end up paying a significant amount of estate and/or inheritance tax regardless of the federal exemption amount.
Laura M. Trujillo
Disclaimer: This blog is for information purposes only. Legal advice is provided only through a formal, written attorney/client agreement.