Depending on the State, a decedent is responsible for the payment of both State and Federal gift and estate taxes. Estate and gift taxes are in addition to the taxes paid on income. No estate or gift tax is due unless or until the total of lifetime gifts combined with the assets remaining in the individual’s estate exceeds certain levels. The basic exclusion amount for imposition of the New York State estate tax for dates of death on or after January 1, 2021, and before January 1, 2022, is $5,930,000. As of January 2018, a New Jersey Estate Tax is no longer being imposed for individuals who die on or after that date; however, New Jersey still imposes an Inheritance tax ranging from 0% to 16% based on the decedent's relationship to the beneficiary (classes of beneficiary). The Federal estate tax exemption for 2021 is $11.7 million (it was $11.58 million for 2020) and is annually adjusted for inflation. This means that when you pass away, the value of your estate is calculated and any amount more than $11.7 million is subject to the federal estate tax unless otherwise excluded. A married couple has a combined exemption for 2021 of $23.4 million. The current exemption, doubled under the Tax Cuts and Jobs Act of 2018, is set to roll back to pre-2018 amounts in 2026. The Biden administration has proposed significant cuts to the estate tax exemption. A consultation with a knowledgeable attorney will allow you to discuss how the proposed legislation will impact your estate plan.