2018 Estate Tax Rates
If you plan to leave assets to your loved ones after your death, then you at least need to consider the possibility that you'll owe federal estate tax. The so-called "death tax" is calculated based on the value of your assets, and the same estate tax rates have applied to taxable estates that have been in place for a long time.
What changes each year is the unified gift and estate tax credit that prevents the vast majority of taxpayers from ever having to pay estate tax. This credit is tied to the tax on an amount known as the lifetime exclusion, which changes every year for inflation. The effective exemption amount will be higher in 2018 than it was in 2017, and that should leave many without having to worry about estate taxes.
Image source: Getty Images.
Source: Fool.com