Estate Tax Exemption
The value an estate can pass free of federal estate tax.
What Estate Tax Exemption means in an estate
The federal estate tax applies only to estates above a threshold called the exemption, so the large majority of estates owe no federal estate tax. The exemption amount is set by federal law and changes over time, so confirm the current figure. Several states also levy their own estate or inheritance tax with their own, usually lower, thresholds, and those vary by state.
How this works in your state
The concept is national, but the forms, procedure names, thresholds, and filing practice vary by state. Open your state glossary and guides to see how estate tax exemption is handled where the estate is being settled.
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Information current as of April 4, 2026
Settled Estate is not a law firm, and this content is for informational purposes only and does not constitute legal advice. Probate laws and procedures in your state can change. Consult with a qualified attorney for advice specific to your situation. Full disclaimer.