The estate tax, sometimes referred to as the death tax, is a tax levied on the transfer of a deceased person&#8217;s assets to their heirs. Understanding how this tax works, especially in the context of specific states like Alaska, is crucial for effective estate planning.
Alaska, unlike many other states, does not have its own state estate tax. This means that Alaskans are only subject to the federal estate tax, which has a significantly high exemption threshold. As of 2023, the federal estate tax exemption is substantial, meaning that most estates will not be subject to this tax. For the most up-to-date information on federal estate tax laws, you can refer to the <a href="https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax" rel="noopener noreferrer" target="_blank">IRS website</a>.
However, it&#8217;s important to note that while Alaska doesn&#8217;t have an estate tax, it does have probate laws that govern the process of distributing assets after someone&#8217;s death. Proper estate planning, including creating a will or trust, is still essential to ensure your wishes are carried out and to minimize potential complications for your loved ones.
Furthermore, remember that tax laws can change, so it&#8217;s always wise to consult with an estate planning attorney or financial advisor to get personalized advice tailored to your specific circumstances. They can help you navigate the complexities of estate planning and ensure your assets are protected.
<h3>Frequently Asked Questions</h3>
<h3>Does Alaska have an estate tax?</h3>
No, Alaska does not have its own state estate tax. Alaskans are only subject to the federal estate tax.
<h3>What is the federal estate tax exemption?</h3>
The federal estate tax exemption is a substantial amount, meaning that only very large estates will be subject to the tax. The amount changes regularly, so consult the IRS website for the most current figures.
<h3>Should I still do estate planning if Alaska doesn&#8217;t have an estate tax?</h3>
Yes! Estate planning involves much more than just estate tax considerations. It includes creating a will or trust, designating beneficiaries, and making arrangements for the management of your assets in the event of incapacity. These are important regardless of whether your estate will be subject to federal estate tax.

Alaska and the Estate Tax: What You Need to Know

Big Beautiful Bill Act, set to come into play in 2025, might make you rethink your estate planning strategies. This change in legislation is poised to reshape the landscape of estate planning, and it&#8217;s crucial to understand how it might impact your plans. The Act has several provisions that could affect the way we plan our estates, with potentially far-reaching implications. For instance, under this new law, the estate tax exemption may be significantly reduced, from the current $11.7 million to potentially as low as $3.5 million. This could mean more estates will be subject to tax, and at a higher rate.



But here&#8217;s the kicker: the Act could potentially eliminate the step-up in basis at death. This provision currently allows for the cost basis of an inherited asset to be increased (or &#8216;stepped up&#8217;) to its fair market value at the time of the owner&#8217;s death. If this provision is eliminated, heirs could face a hefty capital gains tax bill.



Yet, all is not lost. Savvy estate planning can help navigate these potential pitfalls. One strategy might be to make use of the current high exemption amounts by gifting assets now, before the law changes. Another could be creating a dynasty trust that could offer protection against future estate tax changes.



Remember, these changes are still proposals and may not be enacted as they are. However, it&#8217;s always a good practice to stay informed and proactive in your estate planning. Consult with a professional to understand how these potential changes could affect your estate plan.



Source: <a href="https://www.tapinto.net/towns/westfield/columns/ask-lindabury/articles/how-the-big-beautiful-bill-act-reshapes-estate-planning-in-2025" target="_blank" rel="noopener noreferrer">www.tapinto.net</a>

Big Beautiful Bill Act: Transforming Estate Planning in 2025

Have you heard about the 2025 Tax Law Changes? These could shake up your estate planning strategy big time. The One Big Beautiful Bill Act (OBBBA) signed into law on July 4, 2025, ushers in a new era of tax policy, particularly for high-income earners. This legislation builds on the Tax Cuts and Jobs Act (TCJA) of 2017, making several tax benefits permanent and adding new planning considerations around deductions, estate taxes, and business incentives.
<h3>Understanding the New Tax Changes </h3>
The OBBBA introduces major shifts in the tax structure. Most notably, the lifetime estate and gift tax exemption will be raised to $15 million per individual in 2026, replacing the previously scheduled $7 million cap rollback. This change provides greater flexibility for wealth transfers, especially before any future political shifts.
Itemized deductions have been reformed and the State and Local Tax (SALT) relief has been temporarily increased. For high-income earners, it&#8217;s time to rethink deductions. The 35% cap on deduction value and charitable floors may change your giving strategies and income timing.
The legislation also brings about new planning opportunities for small business investors, with enhanced Qualified Small Business Stock (QSBS) rules making longer holding periods more attractive. Additionally, pass-through owners can retain key tax breaks, supporting long-term entity planning.
<h3>Stay Vigilant on SALT Workarounds </h3>
The SALT cap increases to $40K for joint filers starting 2025, but reverts to $10K after 2029. The Pass-through entity tax (PTET) strategy remains crucial for minimizing SALT limitations in high-tax states.
In summary, the 2025 tax law overhaul offers estate and tax planning professionals long-awaited clarity and powerful new tools. Proactive strategy updates are essential for high-net-worth clients in light of these changes.
Source: <a href="https://wealthstrategiesjournal.com/2025/07/28/bessemer-trust-estate-tax-relief-salt-cap-tweaks-and-new-qsbs-perks-jul-7-2025/" target="_blank" rel="noopener noreferrer">wealthstrategiesjournal.com</a>

2025 Tax Law Changes: Estate Tax Relief and New Opportunities

Ever thought about how estate tax could affect you? Well, it&#8217;s currently a hot topic in Oregon. State Rep. Kevin Mannix is making waves with his attempt to change the state&#8217;s estate tax laws. He recently filed two initiatives aiming to overhaul Oregon’s pretrial release program and to abolish the state&#8217;s estate tax. These are the &#8216;Oregon Crimefighting Act&#8217; and the &#8216;End the Death Tax Act&#8217;, both stirring up quite the conversation. Mannix&#8217;s estate tax proposal comes after an unsuccessful attempt by legislative Republicans to raise Oregon&#8217;s estate tax exemption from $1 million to $7 million. Currently, Oregon has the nation’s lowest exemption. Just to give you an idea, the state collected over $338 million in estate taxes in 2024. Mannix is advocating for the complete elimination of this tax. The process isn&#8217;t easy though. It begins by collecting 1,000 signatures for a petition, followed by approval from the state attorney general&#8217;s office. Then, they&#8217;ll need a whopping 117,173 signatures from Oregon voters to make it onto the ballot. That&#8217;s a tall order, representing 6% of the total votes cast for governor in the most recent election. So, what&#8217;s next? It&#8217;s time to watch and wait. If you&#8217;re an Oregon resident, it&#8217;s a good time to brush up on your understanding of estate tax. And if you&#8217;re not, it&#8217;s an indicator of the conversations that could be coming to your state soon.



Source: <a href="https://oregoncapitalchronicle.com/2025/07/22/oregon-state-rep-mannix-files-ballot-measures-to-limit-pretrial-release-end-estate-tax/" target="_blank" rel="noopener noreferrer">oregoncapitalchronicle.com</a>

Oregon’s Estate Tax: The Fight for Change and its Potential Impact

Ever wondered why so many retirees are packing up and moving out of Oregon? It might have something to do with the state&#8217;s estate tax. As it stands, Oregon has one of the lowest estate tax thresholds in the country, kicking in at just $1 million. State Representative Kevin Mannix and co-petitioner Michelle Mhoon aim to change that with their new ballot initiative, dubbed the &#8216;End the Death Tax Act&#8217;. They hope to completely abolish the state&#8217;s estate tax by 2027. This isn&#8217;t the first time such a move has been proposed, but previous attempts to raise the threshold have been unsuccessful. The proposed initiative is drawing attention to Oregon&#8217;s unique tax situation; it&#8217;s one of only 12 states that still levy an estate tax. This has some concerned about the tax&#8217;s impact on local wealth and business, especially as property and asset values continue to rise. On the other side of the coin, the tax brought in a whopping $339 million in 2024, a 297% increase over the past decade. This substantial revenue supports vital public services, leading some to argue that abolishing the tax could widen the wealth gap. The initiative will need 117,173 valid signatures to make it onto the ballot in 2026. Will Oregonians choose to keep the estate tax or vote for its termination? Only time will tell.



Source: <a href="https://www.bendsource.com/news/kevin-mannix-files-ballot-initiative-to-end-estate-tax-23515981" target="_blank" rel="noopener noreferrer">www.bendsource.com</a>

Ending Estate Tax in Oregon: The Impact of Mannix’s Initiative

Are you aware of the ongoing debate about estate taxes in Oregon? The discussion has heated up again, with a push to eliminate the tax altogether. State Rep. Kevin Mannix and co-petitioner Michelle Mhoon recently filed a ballot initiative, Initiative Petition 51 or the End the Death Tax Act, which aims to terminate the estate tax for Oregonians who die after Jan. 1, 2027. The initiative will be on the November 2026 ballot, if it garners enough support.\n\nNow, here&#8217;s a bit of context. Oregon is one of only a dozen states in the U.S. that still levies an estate tax. The state&#8217;s threshold, set at $1 million, is the lowest in the nation. Despite numerous attempts, this number has remained unchanged for decades, even as the value of property and other assets have skyrocketed. This has led some to argue that the tax is driving wealthy individuals out of the state.\n\nHowever, it&#8217;s important to note that Oregon’s estate tax is a big revenue generator, bringing in $339 million in 2024, a 297% increase over the past decade. This tax supports basic public services and contributes significantly to state revenue. Opponents of the proposed changes argue that raising the threshold would widen the wealth gap even further.\n\nInterestingly, this isn&#8217;t the first time Oregonians have grappled with the estate tax. In 2012, voters rejected a measure to phase out the tax. Will the outcome be different this time? That&#8217;s the question everyone will be asking as the November 2026 ballot approaches. So, if you&#8217;re an Oregonian, it&#8217;s time to get informed and make your voice heard on this important issue.



Source: <a href="https://www.wweek.com/news/state/2025/07/17/kevin-mannix-files-ballot-initiative-to-end-estate-tax/" target="_blank" rel="noopener noreferrer">www.wweek.com</a>

Estate Tax: Oregon’s Struggle and the Push for Reforms

Have you ever wondered how changes in tax laws could impact the way wealth is passed down? Well, the GOP is advancing a proposal that could dramatically shift the landscape of estate planning. The plan nestled in the One Big Beautiful Bill Act, currently under Congressional review, is aimed at amplifying the federal estate tax exemption. This would allow wealthier families to transfer even greater portions of their assets tax-free. If approved, the exemption threshold would surge to $15 million for individuals and $30 million for married couples starting 2026. This is a significant jump from the current $13.99 million and $27.98 million, respectively.\n\nThis proposal is set to replace the existing provisions of the 2017 Trump tax law, which temporarily doubled the estate tax exemption. However, this law is due to expire at the end of 2025. The GOP plan is thus seen as an extension and solidification of the retreat of the estate tax. It mirrors a wider federal trend of preserving generational wealth, as opposed to redistributing it.\n\nBut who exactly stands to benefit from these changes? The answer: primarily those with ultra-high net worth. With the ability to transfer over $30 million per couple without facing estate or gift tax, those with large family businesses, real estate holdings, and generational trusts are set to gain the most. The measure also protects family enterprises and promotes financial certainty, which could prevent forced asset sales upon death.\n\nHowever, the reach of the estate tax is shrinking. According to IRS data, it affected only 0.08% of adult deaths in 2019, a decrease from 0.9% in 1934. The proposed changes could further reduce this percentage. So, whether you&#8217;re in the ultra-high-net-worth category or not, it&#8217;s crucial to keep an eye on these potential changes and plan your estate accordingly.



Source: <a href="https://www.newsweek.com/gop-budget-plan-larger-tax-free-wealth-transfers-estate-tax-2091433" target="_blank" rel="noopener noreferrer">www.newsweek.com</a>

Proposed GOP Plan: Bigger Tax-Free Wealth Transfers in Estate Planning

Ever considered the financial implications of losing a loved one, especially if you&#8217;re part of a farming family? 2025 might just be the year that puts your estate planning skills to the test. The Tax Cuts and Jobs Act (TCJA) of 2017 brought significant relief for many farm families, but with the expiration of many of its provisions by the end of 2025, a new financial burden is lurking on the horizon.



The key concern? The estate tax, or as some would call it, the &#8216;death tax&#8217;. This is the hefty tax families must pay on the value of their loved one&#8217;s estate, and it&#8217;s due just nine months after their passing. Without any legislative intervention, the estate tax exemption is set to drop by 50% to $7.61 million on Jan. 1, 2026. This means that the IRS could potentially be owed up to 40% of a farm&#8217;s value above this limit.



If you&#8217;re wondering why this is a problem, consider this: most of a farm&#8217;s value is tied up in land and expensive equipment, with actual cash on hand typically much lower. Paying a huge tax bill under such circumstances can be extremely difficult, if not impossible.



The Tax Cuts and Jobs Act did provide some relief by doubling the estate tax exemption from $5.5 million per individual to $11 million, indexed for inflation. Property transferred to a spouse is exempt from this tax, effectively doubling the exemption upon the surviving spouse&#8217;s passing. However, with the looming 2025 expiration of this provision, the future of many farm families hangs in the balance.



Consider this a wake-up call to start planning ahead. The financial future of your farm and family could depend on it.



Source: <a href="https://www.fb.org/market-intel/2025-tax-cliff-death-taxes-threaten-farm-families" target="_blank" rel="noopener noreferrer">www.fb.org</a>

Navigating the 2025 Tax Cliff: How ‘Death Taxes’ Impact Farm Families

What happens when key provisions from the Tax Cuts and Jobs Act (TCJA) are set to expire in 2025? Well, lawmakers have a unique opportunity for significant tax reform, and that&#8217;s something we should all pay attention to. The TCJA, which was passed in December 2017, brought significant changes to two major categories of taxes: income taxes and estate taxes. With these changes set to expire on December 31, 2025, the future is uncertain.



The TCJA doubled the estate tax exemption, boosting it significantly. In 2017, single filers had an exemption of $5.5 million and married couples $11.1 million. However, the TCJA raised this to $11.4 million for single filers and a whopping $22.8 million for married couples in 2018. But here&#8217;s the kicker: this doubled exemption will expire after 2025.



Proponents of the TCJA believed that by doubling the estate tax thresholds, it would encourage Americans to save more and have a positive effect on small farms and businesses. Critics, however, argue that this expanded exemption allows wealthy families to sidestep taxes on unrealized capital gains.



Interestingly, estate tax collections make up a small fraction of the federal revenues, amounting to less than 1%. The Tax Policy Center estimates that just over 7,000 returns will pay estate taxes in 2024, nearly tripling to around 19,000 returns when thresholds drop after 2025.



With the looming expiration of several TCJA individual tax provisions, it&#8217;s crucial for Congress members to carefully assess the impact of extending, ending, or modifying them. So, as we inch closer to the end of 2025, keep an eye on how these shifts could potentially affect your estate planning strategies.



Source: <a href="https://bipartisanpolicy.org/explainer/the-2025-tax-debate-individual-estate-and-gift-taxes-in-tcja/" target="_blank" rel="noopener noreferrer">bipartisanpolicy.org</a>

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