Estate Tax Planning Calculator

Want To Estimate Your Estate Tax Liability?

If you would like to safeguard your wealth for your next generation, it’s better to deal with the estate taxes in a smart way. For this reason, tax liability arising from your wealth should be your main concern. You can use our free estate tax & probate calculator for such safeguard because it can compute the value of your estate & determine the estimated estate taxes for the forthcoming years as well.
Estate tax : How to Calculate Your Estate Tax Liability?
You should look up with your tax consultant to be informed about the federal estate tax rate and the exemptions amount on estate tax for current year. There are some other provisions regarding estate tax calculation such as unused spousal exemption; which will help you to determine the actual tax liability considering all allowable exemptions. It is important to note that unused spousal exemption is not considered in this estate tax planning calculator.
What is your potential estate tax liability?
Exemptions and Maximum Tax Rates are subject to the current year’s Federal Income Tax rules & regulations. You can take information about Exemptions and Maximum Tax Rates from Federal Tax Authority.
Married checkbox
You need to check the box if you are “Married”. Therefore, if you are married, you need to enter an amount of wealth that you are going to transfer to your spouse at the time of your death.
Transfer to spouse
Transfer to spouse is a good mechanism to reduce your estate tax amount. Because transferred assets to surviving spouse is not subject to estate tax. Using this calculator you can easily enter the amount of your assets transferred to your spouse.
Used gift exemption
At the time of your death you estate tax exemption would be reduced if you give out huge gifts in your lifetime. Federal Tax System is designed in such a way that you cannot avoid the tax of your wealth. Your used gift exemption will be $0 if you do not gift over $10,000 to anyone other than your spouse and any non-profit organization. The limits of exemptions are indexed to inflation in $1,000 increments in the forthcoming years.‘Used gift exemption’ is the total excess from the previous step. In 2014, gift exemption amount is $14,000 for single person and $28,000 for married couple. These amounts will be adjusted for prevailing inflation in the economy.
Expected inflation rate
It is your expected average long-term inflation rate and can be calculated using the Consumer Price Index (CPI).
Annual asset growth
It is the rate of annual changes in your total assets balance. Enter a positive value when there is any growth in your total asset balance; otherwise enter a negative value.
Annual debt growth
This is the rate of annual changes in your total debt balance. Enter a negative amount when there is any reduction in your total debt balance. Otherwise, enter a positive amount in this calculator.
Charitable contributions
If you donate your assets to any charitable organization at your death, your estate taxes will be reduced.
Life insurance
It is the cash value of your life insurance policy which insures someone else’s life. You can show this cash value as “Investments” in the assets page. This will increase your estimated asset growth rate.
Home
This is the current value of your home. This value should be closer to the current market value.
Other real estate
This is fair market value of other real estates including any second home, commercial buildings, undeveloped land, rental property etc.
Automobiles
Total value of your automobiles excluding any leased automobiles.
Other vehicles
Enter the value of any other vehicles like Campers, RVs.
Jewelry
The current market value of your jewelry including gems & golds.
Household items
The value of your household items like home appliances or furniture.
Checking and savings
Total balance of your checking & savings accounts in the current period.
Retirement accounts
It is the current balance of you retirement plan including 401(k) savings, variable annuities etc.
Savings bonds
Enter the total amount of your savings bonds.
Bonds
Enter the total amount of your investment in treasury, commercial, and municipal bonds.
Mutual funds
Enter the total amount of any mutual funds if you have any.
Stocks
If you have investment in stocks, enter the amount of your investments. Don’t include stocks held in any retirement account.
Cash value of life insurance
The cash value your own life insurance policy which insures someone else’s life. You can show this cash value as “Investments” in the assets page.
Cash
Enter the total amount of cash that you have in your hand.
Other
Input the total amount of any other assets that you have.
Home mortgage principal
The total remaining principal amount of your mortgage.
Other mortgage principal
If you have any other mortgages, you can enter its current principal balance here.
Auto loans
Total current owing amount of your auto loans.
Student loans
Enter the total outstanding balance that you will repay in the upcoming periods.
Other loans
Enter the total outstanding balance of any other loan if you have any.
Credit card debt
Mention the total amount of your credit card debt in this field.
Funeral expenses
Amount of your funeral expenses. If you want to use money from your estate to pay funeral expenses, it will save your estate tax amount.
Probate percent
Enter the percentage of your remaining estate which will be paid in probate costs.
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