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Estate Tax Calculator
Estimate federal estate tax liability. Many states impose additional estate taxes.
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U.S. Estate and Gift Tax Guide: Exemptions, Rates, and Strategies (2024-2025)
death duty calculator understanding Estate and Gift Taxes in the U.S.
death duty calculator estate and gift taxes are federal levies imposed on wealth transfers, either during a person’s lifetime (gift tax) or after death (estate tax). Proper planning can help minimize tax liabilities and maximize wealth preservation for heirs.
Federal Estate and Gift Tax Exemptions & Rates (2001-2025)
| Year | Lifetime Exemption | Tax Rate |
|---|---|---|
| 2001 | $675,000 | 55% |
| 2002 | $1 million | 50% |
| 2003 | $1 million | 49% |
| 2004 | $1.5 million | 48% |
| 2005 | $1.5 million | 47% |
| 2006 | $2 million | 46% |
| 2007 | $2 million | 45% |
| 2008 | $2 million | 45% |
| 2009 | $3.5 million | 45% |
| 2010 | Repealed | 0% |
| 2011 | $5 million | 35% |
| 2012 | $5.12 million | 35% |
| 2013 | $5.25 million | 40% |
| 2014 | $5.34 million | 40% |
| 2015 | $5.43 million | 40% |
| 2016 | $5.45 million | 40% |
| 2017 | $5.49 million | 40% |
| 2018 | $11.18 million | 40% |
| 2019 | $11.4 million | 40% |
| 2020 | $11.58 million | 40% |
| 2021 | $11.7 million | 40% |
| 2022 | $12.06 million | 40% |
| 2023 | $12.92 million | 40% |
| 2024 | $13.61 million | 40% |
| 2025 | $13.99 million | 40% |
Key Differences: Estate Tax vs. Inheritance Tax
Estate Tax
- Imposed on the total value of a deceased person’s estate before distribution.
- Federal exemption for 2024: $13.61 million per individual (double for married couples).
- Only amounts above the exemption threshold are taxed at 40%.
- No tax on assets transferred to a surviving spouse (marital deduction).
Inheritance Tax
- Paid by heirs receiving assets (not the estate itself).
- No federal inheritance tax, but some states impose it (e.g., Pennsylvania, New Jersey).
- Tax rates vary based on heir’s relationship to the deceased (spouses/children often exempt).
How to Reduce Estate Taxes Legally
death duty calculator
1. death duty calculator annual Gift Tax Exclusion (2025: $18,000 per recipient)
- Gifts below this limit are tax-free and do not count toward lifetime exemption.
- Exempt gifts: Charitable donations, tuition/medical payments (paid directly), spousal transfers.
2. Irrevocable Trusts
- Removes assets from taxable estate while allowing controlled distributions.
- Living trusts avoid probate, while testamentary trusts activate after death.
3. Charitable Donations
- Unlimited tax-free gifts to qualified 501(c)(3) organizations.
4. Spousal Transfers
- Unlimited tax-free transfers between spouses (must be U.S. citizens).
5. State Tax Planning
- 19 states + D.C. levy estate/inheritance taxes. Relocating can reduce liability.
death duty calculator estate Planning Checklist
✅ Inventory Assets (real estate, investments, insurance, businesses).
✅ Create a Will (ensures asset distribution per your wishes).
✅ Establish Trusts (avoids probate, reduces taxes).
✅ Assign Power of Attorney (for financial/medical decisions).
✅ Consult a Professional (estate attorneys, tax advisors).
Why Estate Planning Matters
- Avoids probate delays and unnecessary court fees.
- Protects minor children by assigning guardianship.
- Minimizes tax burdens for heirs.
- Ensures wealth transfer aligns with your wishes.
