Estate Tax
Federal tax on the transfer of a deceased person's estate. Current exemption: $13.61M per person (2024). The exemption is scheduled to be cut roughly in half in 2026, making estate planning urgent for business owners with estates over $7M. California has no state estate tax, but the federal rate is 40% above the exemption.
Where This Matters
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Succession Planning
→Passing a business to the next generation — family dynamics, valuation for transfer, gift/estate tax strategy, and management transition.
Tax Strategy
Legal strategies to reduce business and personal tax burden — entity optimization, deferred compensation, retirement planning, California-specific tactics.
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