What Are the Estate Taxes in Utah?

If you are approaching the estate planning process in Salt Lake City, there are a number of considerations to take into account. One of the main goals of estate planning is to ensure your beneficiaries are taken care of, so it makes sense to consider any taxes that they might be forced to pay. Estate tax is a contentious issue throughout the United States, and many individuals feel that it’s wrong to tax people simply because their loved one has passed away. So how does Utah handle this issue? What are the estate taxes in the Beehive State? How do you ensure that your beneficiaries are not paying unnecessary taxes when you pass away?

These are all important questions, and they’re probably best left answered by a legal professional. Enlist the help of a qualified, experienced estate planning attorney in Salt Lake City, and you can approach the entire estate planning process in the most efficient way possible. Not only can you take steps to avoid estate taxes wherever possible, but you can also complete virtually every other aspect of your estate plan in a stress-free, dignified manner.

Utah Has No Estate Taxes or Inheritance Taxes

Utah is one of the best states in terms of estate taxes and inheritance taxes – simply because there are none. Citizens of this state do not need to worry about getting a tax bill when their deceased family member passes away. These laws are somewhat new, and prior to 2005 Utah did indeed collect an estate tax.

There are Exceptions

With all that said, there are notable exceptions. First of all, you may still experience an inheritance tax if you inherit funds from a deceased family member who lived in another state at the time of their passing. For example, if your grandfather lived in New Jersey before passing away, your inheritance would be subject to the Garden State’s estate tax. Fortunately, this is somewhat rare. Only a handful of states have an inheritance tax.

There is one other situation in which beneficiaries might be required to pay estate taxes in Utah. When someone leaves behind a large sum of money (we’re talking millions), those funds automatically become subject to federal estate taxes. Utah’s laws no longer apply. As of 2021, the amount exceeding $11.7 million is taxed at 40%.

That being said, individuals with fortunes larger than $11.7 million generally take advantage of methods that allow them to transfer wealth without incurring these taxes. There are a number of ways in which you can do this, and this is certainly something worth speaking to your estate planning attorney about.

Enlist the Help of a Qualified Attorney Today

If you’ve been searching Utah for a qualified, experienced estate planning attorney, look no further than Stephen J. Buhler, Attorney at Law. With a firm understanding of estate taxes in the Beehive State and plenty of experience, we can help you approach the estate planning process in a worry-free manner. Our offices are conveniently located in Salt Lake City, so reach out today.

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