| Type | Cost | Details | Notes |
|---|---|---|---|
| Budget | $0–$0 | DIY / basic | Low-fee option |
| Mid-range | $0–$0 | Standard service | Good value |
| Premium | $0–$1 | Full-service | Highest quality available |
Compare providers near you
| Tax Type | Threshold | Rate |
|---|---|---|
| Federal estate tax exemption | $13.6 million (individual) | 40% on amounts above |
| Federal estate tax (married) | $27.2 million (combined) | 40% on amounts above |
| State inheritance tax (6 states) | $0–$500 (varies) | 1–18% (varies by state and relationship) |
| State estate tax (12 states + DC) | $1M–$13.6M (varies) | 0.8–20% |
Only 0.1% of estates owe federal estate tax (those above $13.6 million). However, 6 states levy separate inheritance taxes on beneficiaries regardless of estate size: Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. In these states, non-spouse, non-child beneficiaries (siblings, nieces, friends) can owe 5–18% tax on their inheritance. Spouses are exempt in all states. Proper estate planning with trusts can significantly reduce or eliminate state-level taxes.
| Tax Type | Threshold | Rate |
|---|---|---|
| Federal estate tax exemption | $13.6 million (individual) | 40% on amounts above |
| Federal estate tax (married) | $27.2 million (combined) | 40% on amounts above |
| State inheritance tax (6 states) | $0–$500 (varies) | 1–18% (varies by state and relationship) |
| State estate tax (12 states + DC) | $1M–$13.6M (varies) | 0.8–20% |
Only 0.1% of estates owe federal estate tax (those above $13.6 million). However, 6 states levy separate inheritance taxes on beneficiaries regardless of estate size: Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. In these states, non-spouse, non-child beneficiaries (siblings, nieces, friends) can owe 5–18% tax on their inheritance. Spouses are exempt in all states. Proper estate planning with trusts can significantly reduce or eliminate state-level taxes.
The true cost of inheritance tax extends well beyond the sticker price. Fees, tax implications, opportunity costs, and time horizons all factor into the real cost of any financial decision. Evaluating only the upfront cost without considering long-term impact leads to consistently poor financial outcomes.
Individual circumstances drive the right choice more than general advice. Your tax bracket, timeline, risk tolerance, and existing financial picture all influence which option delivers the best outcome. What works for someone in their 20s with decades of compounding ahead is very different from what makes sense for someone approaching retirement.