Maybe you've given some thought to the hereafter and what your heirs might be in line to inherit. Maybe you thought about reducing the size of that estate beforehand to cut down on any possible taxes—but then decided the federal exemptions were large enough that you wouldn't really need to bother. After all, the new tax law boosted the amount of assets exempt from federal estate taxes to $11.18 million per person, or $22.36 million for a married couple. In fact, MarketWatch says that just 5,219 households actually had to fork over the cash at time of death—and, citing a New York Times report, it adds that Donald Trump may not have been among those paying their fair share. But regarding those who did pay up: The report says that they "paid roughly $18.3 billion in taxes on their estates that were valued at $107.8 billion back in 2016, the most recent year for which data is available, according to the Internal Revenue Service." And now it's likely even fewer, thanks to the 2017 tax law that doubled the amount in assets exempt from the tax. Says the report, "The Tax Policy Center estimated that as of 2018 only 1,700 estates would owe taxes following the passage of the tax reform plan in Congress, which equates to less than 0.1 percent of all deaths in the U.S. And the amount in taxes they would owe would also shrink the amount these individuals owe to just $13.6 billion." Not in such rarefied atmosphere? You could still be on the hook. Bear in mind that while very few actually pay federal estate tax, that won't help you when it comes to state estate taxes, or your heirs when it comes to inheritance taxes. You see, you might not have considered how much some states levy on estates—yes, some still have estate taxes and even inheritance taxes—and how much your heirs might have to pay out of what's left to clear the inheritance tax they'll be stuck for. In fact, 12 states and the District of Columbia all have their own estate taxes, and six states levy an inheritance tax, too, which will mean your beneficiaries could be stuck twice, so to speak. And even though New Jersey and Delaware eliminated their estate taxes at the end of 2017, that means the odds are still fairly high that your executor, and possibly your heirs, could be in line to pay some hefty sums on what you leave behind. Want to move and cut the tax burden? Sure, that's a possibility. So lest you make a premature decision on that, we found that Kiplinger had taken a look at the situation and found the 9 states with the highest levy in estate/inheritance taxes. Before you put the house on the market and call the moving vans, here are those states, along with exemptions and tax rates. They're listed in order of the more generous exemptions first.
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