Estate taxes, sometimes known as “death taxes”, are done both by the federal government as well as a small number of states. Estate taxes will become implemented when a person’s estate has exceeded a certain amount at their death. The federal estate tax rate is set to be at $11,700,000 for 2021.
Currently, Oregon and Massachusetts have the smallest estate amount needed to receive an estate tax. Rhode Island comes as a close second, while Washington state is third. For tax rates, Washington state has the highest rate for the smallest estate amount. Both Washington and Hawaii have the highest estate tax rate of 20%, but Hawaii’s highest rate starts at over 10 million, while Washington’s start at 9 million.
If you live in one of the states below, contact an attorney to learn how to minimize your estate.