Is there an inheritance tax in the state of California?
There is no Inheritance Tax in the state of California. Federal Estate Tax only comes in if the total estate is valued at more than $2 million in 2008 and $3.5 million in 2009. Putting the money in a Trust has no effect on whether taxes have to be paid. Taxes are levied on the value of the estate. The “location” of the assets has no bearing on taxation. That being said, passing on your assets with a will involves probate. Probate costs are (including attorney’s fees) are mandated by statute in California Law. The minimum cost for Probate in California starts at $33,000. If your assets are put in a Trust, whether Revocable or Irrevocable, then your estate avoids Probate entirely therefore avoiding both the cost of the Probate and the delay that Probate causes (which can be months or years). Since the cost of a Trust is less than $10,000 (it is that high only for a VERY complicated Trust-the average is more like $3,000- $4,000) and the cost of Probate starts at $33,000 then making the Tr
