Before they pass away, most everyone wants to rest assured, knowing their loved ones are financially stable for life. You want to pass down your money, homes, and cars to your family and friends. However, you need to be aware of a few things.

One of these is estate tax.

San Diego Probate Attorneys can help you find the best ways to minimize the estate tax payable by your family when you pass away.

What Is Estate Tax?

When a person passes away, the net value of everything they owned at death is subject to federal estate tax, currently at a rate of 40%.

Currently, however, if someone dies with less than around $11.7 million of net assets, their family is not subject to estate tax. That exemption amount is double for married couples. This exemption amount is historically high and is scheduled to fall to approximately $6 million per person on January 1st, 2026.

State Estate Taxes

Some states impose a state estate tax in addition to the federal estate tax. Currently California does not inpose state estate tax, so residents of California only need to be concerned with the federal estate tax, if they have net assets above the exemption amounts set out above.

Reducing your estate tax exposure

When San Diego residents accumulate signifncant wealth throughout their lifetime, it is possible that some of what has been accumulated will be lost to estate taxes. If estate tax is due, it generally must be paid within 9 months of death. By working with an attorney to plan in advance, there are various structures that can be put in place to either minimize or eliminate the estate tax that your family will otherwise have to pay. The earlier you start planning, the more effective these techniques are likely to be.

You have options that allow you to protect your assets and help to minimize estate taxes.

Get In Touch

If you have possible estate tax exposure, or you may do in the future due to an inheritance, for example, contact San Diego Probate Attorneys and discuss how best to reduce that exposure.

Estate taxes can severely deplete the resources that you leave behind for your family. The sooner you start the planning process, the more options will be available to minimize the exposure.

San Diego Probate Attorneys
402 W Broadway Suite 400 - B
San Diego, CA 92101
(858) 333-8844