Martha Lincoln's husband passed away unexpectedly last year. His sole estate was bequeathed to her, and in the event of her passing, was to go to his children. Martha has a $25 million taxable estate. If she dies this year, what tax rate will her beneficiaries have to pay under current law?

Question

Quizplus · Accepted Answer

The federal estate tax rate for estates exceeding the exemption amount is 40 percent. As of 2023, the estate tax exemption is $12.92 million, so Martha's $25 million estate would be subject to this rate on the amount exceeding the exemption.

Martha Lincoln's Husband Passed Away Unexpectedly Last Year