Inheritance & Estate Tax Estimator
Estimate federal estate tax and state inheritance tax exposure for large estates. Understand the $13.61M federal exemption and plan accordingly. Consult an estate attorney for specific advice.
🏛️ Estate Planning💰 Federal Estate Tax applies only above $13,610,000 (2024)
Total estate value ($)
Debts and settlement expenses ($)
Surviving spouse inheriting?
State
Please enter valid values.
Formula & Reference
| Variable | Formula | Units |
|---|---|---|
| Inheritance & Estate Tax Estimator | Federal Estate Tax applies only above $13,610,000 (2024) | $ estimate |
Step-by-Step Examples
Example 1
Below Federal Threshold
$10M estate, no spouse, no state tax.
- Federal exemption $13.61M > $10M estate
- $0 federal estate tax
- Verify any state estate tax separately
✓ $0 federal estate tax
Example 2
Above Threshold
$20M estate, $500k debts, no spouse, no state tax.
- Taxable: $19.5M | Over exemption: $5.89M
- Federal tax: $5.89M × 40% = $2,356,000
✓ ~$2,356,000 federal estate tax
Example 3
Spouse Inheriting
$25M estate to surviving spouse.
- Unlimited marital deduction: $0 federal tax now
- At second death, full $25M subject to tax
- Use portability election + bypass trusts for planning
✓ $0 now (marital deduction) — planning needed for second death
Real-World Applications
Estate Planning
Understanding exposure motivates planning: trusts, annual gifting, charitable giving.
Wealth Transfer
Strategies: annual gifting ($18k/person), 529 superfunding, irrevocable trusts.
Attorney Prep
Bring estimated liability to estate attorney to frame the planning conversation.
Financial Planning
Estate tax projections affect long-term investment and gifting strategies.
Common Mistakes to Avoid
⚠️
Confusing estate tax and inheritance tax
Estate tax: paid by estate before distribution. Inheritance tax: paid by recipient. Six states have inheritance tax (IA, KY, MD, NE, NJ, PA).
⚠️
Ignoring the 2026 exemption sunset
The current $13.61M exemption halves to ~$7M per person in 2026 unless Congress acts. Estates $7–14M should plan now.
⚠️
Thinking estate planning is only for the ultra-wealthy
Everyone needs basic documents (will, POA, healthcare directive, beneficiary designations) regardless of estate size.
Frequently Asked Questions
Federal estate tax exemption 2024? ▾
$13,610,000 per person ($27,220,000/couple via portability). Top rate: 40% above exemption.
What is portability? ▾
A surviving spouse can use the deceased spouse’s unused exemption. Requires filing an estate return to elect portability even if no tax is owed.
Which states have estate/inheritance tax? ▾
~17 states. Notable: MA and OR have $1M exemptions. MD has both estate and inheritance tax.
Is life insurance included? ▾
If you own the policy, yes — death benefit is part of your taxable estate. ILITs (irrevocable life insurance trusts) remove it.
Common tax reduction strategies? ▾
Annual gifting, 529 superfunding, charitable remainder trusts, donor-advised funds, GRATs, and irrevocable trusts.