Understanding Federal Estate Tax Result

What is Federal Estate Tax and how does it affect Antonio's estate worth $20 million?

Given Antonio's estate worth $20 million, how much will be subject to Federal Estate Tax?

Federal Estate Tax Explanation

Antonio's estate is valued at $20 million. This amount would typically be subject to Federal Estate Tax. However, the current federal estate tax exemption is $11.7 million per person. This means that Antonio's estate does not exceed the exemption threshold, making it not subject to federal estate tax.

When an individual passes away, their estate may be subject to Federal Estate Tax if it exceeds a certain exemption threshold. In Antonio's case, his estate worth $20 million falls below the current exemption of $11.7 million per person.

As a result, Antonio's estate is not subject to federal estate tax, and no tax would be owed. This exemption threshold protects estates valued below $11.7 million from being taxed at the federal level.

Antonio's will allocates $10 million to his wife, which qualifies for the unlimited marital deduction, allowing the transfer to be tax-free. The remaining $10 million designated for his church may also qualify for a charitable deduction, further decreasing the taxable estate amount.