Estate Tax Exemptions

Estate tax exemptions are limits set by the government on how much of a person's estate can be transferred to heirs without incurring estate taxes. If the estate's value is below this exemption amount, no estate tax is owed. For example, if the exemption is $12 million, estates valued at less than that are exempt, while larger estates may pay taxes on the amount exceeding the exemption. These exemptions can change over time due to law updates or inflation adjustments. They help prevent small or moderate estates from being heavily taxed upon death.