U.S. estate tax

Mr. Ryan, who settled in New England, finally made up his mind to sell his business for many years, ready to enjoy retirement with his wife, daughter, grandchildren.After half a lifetime of hard work, Ryan's real estate and investment almost add up to a net worth of more than $800 million.And Ryan, always wanted to leave this wealth to his children.

"There are so many people richer than me," Mr. Ryan said. "I don't think I have many assets. It might be easier to leave to my children."

However, when Ryan saw that the 2020 state tax exemption was deducted,Will also face paying more than $60U.S. estate tax, The mentality has undergone a subtle change.

"Having struggled for a lifetime, I didn't expect people to leave the money to their children and have to pay such a sum of money."

U.S. estate tax: a duo of federal and state

In 2020, only if both spouses have more than $2316 million in assets, or one spouse has more than $1158 million in assets, will they face the issue of US federal estate tax.At present, although many people think like Ryan: "Look, my family assets are not that many", "There is no need to worry about the US inheritance tax."

However, the U.S. estate taxIn addition to the “federal” we usually recognize, we also face state inheritance taxes from the state government.Even if we only have real estate and some investments, we may still face the problem of being taxed by the state government on the issue of passing on wealth to the next generation.

Currently, there are still12 states and the District of Columbia continue to levy state inheritance taxes, 而In 6 states, there is also a child inheritance tax.

American Life Insurance Guide©️Collect the following items that are still subject to state inheritance taxList of 12 states (2020 year)For readers’ reference, if your family lives in the following states and you are considering passing on the property to your children, you can combine tax rate distribution and cost analysis,Prioritize the use of life insurance policies for wealth inheritance planning, and solveU.S. estate taxproblem.

1. Connecticut

• Inheritance tax: will get
• Inheritance tax exemption: $510
• Inheritance tax rate: 7.2% - 12%

2. District of Columbia

• Inheritance tax: will get
• Inheritance tax exemption: $5,762,400
• Inheritance tax rate: 12% - 16%

3. Hawaii

• Inheritance tax: will get
• Inheritance tax exemption: $549
• Inheritance tax rate: 10% - 20%

4. Illinois/Illinois

• Inheritance tax: will get
• Inheritance tax exemption: $400
• Inheritance tax rate: 0.8% - 16%

5.Maine/Maine

• Inheritance tax: will get
• Inheritance tax exemption: $580
• Inheritance tax rate: 8% - 12%

6. Maryland

• Inheritance tax: will get
• Inheritance tax exemption: $500
• Inheritance tax rate: 0.8% - 16%

7. Massachusetts

• Inheritance tax: will get
• Inheritance tax exemption: $100
• Inheritance tax rate: 0.8% - 16%

8.Minnesota/Minnesota

• Inheritance tax: will get
• Inheritance tax exemption: $300
• Inheritance tax rate: 13% - 16%

9. New York State/New York

• Inheritance tax: will get
• Inheritance tax exemption: $585
• Inheritance tax rate: 13% - 16%

10. Oregon / Oregon

• Inheritance tax: will get
• Inheritance tax exemption: $100
• Inheritance tax rate: 10% - 16%

11. Rhode Island

• Inheritance tax: will get
• Inheritance tax exemption: $1,579,922
• Inheritance tax rate: 0.8% - 16%

12.Vermont/Vermont

• Inheritance tax: will get
• Inheritance tax exemption: $425
• Inheritance tax rate: 16% (Flat Rate)

13.Washington State/Washington

• Inheritance tax: will get
• Inheritance tax exemption: $219.3
• Inheritance tax rate: 10% - 20%

(>>>Recommended reading: column｜U.S. estate tax under the influence of the 2021 Biden tax reform: "Use it, or give up"）

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