If you are in the process of setting up an estate plan, or you already have a plan in place and want to review or update your estate plan, you need to take various issues into consideration. From dividing your assets among beneficiaries to the person you place in charge of your estate after your death, you may have many different questions and concerns.
It is also important to take a look at estate taxes, especially if you have a high net worth. Some people do not realize that filing an estate tax return is necessary, in some instances.
Estate taxes in California
According to the Office of the Controller, filing a California Estate Tax Return is not required if the decedent passed away after 2005. Therefore, if you are setting up an estate plan now, you do not need to worry about estate taxes at the state level. That said, estate taxes could still surface, depending on your circumstances.
Estate taxes at the federal level
The Internal Revenue Service reports that if an estate has prior taxable gifts and combined gross assets of more than $12,060,000 in 2022, filing an estate tax return becomes required. It is important to note that this limit can change from year to year. That said, estate tax returns typically are not required for a majority of simple estates.
If you have a high net worth and expect that an estate tax return will become necessary, it is vital to think ahead and go over all of your options when setting up your estate plan.