Understanding the difference between estate taxes and income taxes is essential for California residents who want to preserve wealth for their families.
Estate Taxes
Estate taxes are assessed on the transfer of assets after death. In 2026, estates exceeding $13.6 million are subject to federal estate taxes, potentially reducing the inheritance your beneficiaries receive.
Income Taxes
Income taxes are assessed on earnings during your lifetime and on certain inherited assets. California has one of the highest income tax rates in the U.S., making coordination between estate and income planning critical.
Planning Strategies
- Trusts: Protect assets and potentially reduce estate taxes
- Gifting: Transfer assets gradually during your lifetime
- Charitable planning: Reduce estate and income taxes while supporting causes you care about
A strategic estate plan considers both estate and income taxes, ensuring your legacy is preserved and efficiently transferred. Consult with our experienced estate planning attorney to integrate tax strategies into your family’s estate plan by calling 877-405-6446 or completing our confidential contact form today.
