Those of us who live here in San Diego know what a great place San Diego is to live and work. Besides the wonderful weather and the proximity to the beautiful beaches of La Jolla, Del Mar, and other coastal areas, there is another benefit you might not realize. California is one state that does not have an inheritance tax.
17 states and the District of Columbia assess an inheritance tax on the portion of an estate received by an individual. This is in addition to the federal estate tax levied on the estate before it is distributed. As we reported in earlier blogs, a federal estate tax will have to be paid on estates over $3.5 million in 2009. States which have an inheritance tax assess it separately against each beneficiary and each beneficiary is responsible for paying the tax to the state, although there may be a lower tax rate for spouses and children of the deceased as opposed to a distant cousin.
A revocable living trust can help reduce estate taxes for couples in California as can other advanced estate planning techniques. If you need to set up a trust or want to know your options for reducing estate taxes, contact us. The experienced estate planning attorneys at Law Office of Scott C. Soady, A Professional Corporation would be happy to meet with you at no charge for your first consultation.