In some states, there’s an estate tax that is tacked on to the money or assets that an individual leaves behind before they are distributed to their beneficiaries. Utah is one of 39 states that doesn’t collect estate taxes, though. There’s no gift or inheritance tax that you’re responsible for paying here either. There is a federal estate tax that you’re responsible for paying, though.
While Utah doesn’t have estate, inheritance or gift taxes that must be paid before or after money or assets are distributed, individuals living out-of-state may be taxed if there are laws that exist allowing them to be in their own jurisdiction.
The federal government also has a gift tax that they charge. The first $15,000 that an heir receives is exempt from being taxed. The federal government allows you to receive a lifetime exemption totaling $11.18 million.
Federal officials also have an estate tax in place. Existing law allows for a single person to receive an exemption for the first $11.18 million that their estate would have to owe. If a decedent was married at the time of their death, then that amount increases to $22.36 million once both spouses pass away. Claiming your exemption takes some careful estate pre-planning on your part, or otherwise, you may end up having to pay.
Individuals in St. George often ask what an ideal age is to start planning their estate. The truth of the matter is that it’s never too early for an adult to draft an advance health directive, for a parent to draft up a will in which they discuss guardianship of their minor kids or the owner of a company to outline their business succession plans. An estate planning attorney can guide you in drafting these documents and getting your final affairs in order.