Plain-English guides on federal and state estate tax, gifting strategies and inherited assets.
The 2026 federal estate tax exemption is $15 million per person ($30 million for married couples). Estates below the exemption owe no federal tax. State exemptions are lower.
Read →The federal estate tax applies at 40% on the taxable estate above the exemption. Fewer than 1 in 500 estates pay it, but the math matters when they do. Here is the full picture.
Read →Estate tax is paid by the estate before distribution. Inheritance tax is paid by the heirs after they receive assets. Six states levy an inheritance tax. Here is how they differ.
Read →Twelve states and DC have an estate tax; six states have an inheritance tax. Here are the states, their exemptions and top rates, updated for 2026.
Read →Annual gifting, irrevocable trusts, charitable giving and business structures can all reduce a taxable estate. Here are the most common strategies and how each one works.
Read →A step-up in basis resets the cost basis of inherited assets to their fair market value at the date of death, potentially eliminating capital gains on a lifetime of appreciation.
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