How valuable does somebody’s estate have to be, at death, in order to incur federal estate taxes in 2020?
If an estate is valued at below $11.58 million, an individual does not have to pay federal estate taxes. That’s why most seniors don’t have to worry about estate taxes.
Things get a little bit more complicated and confusing because 12 states as well as the District of Columbia do charge a state estate tax! Add to that an inheritance tax and you may still be looking at paying hefty amounts out of pocket.
It’s important to research your state’s thresholds, as they could be vastly different, especially if you’re planning on relocating during retirement!
