People in New York who are preparing an estate plan may wonder how to structure that plan to avoid estate tax. In many cases, doing so is not necessary. With the estate tax exemption set to rise to $5.45 million in 2016, many people’s estates will fall under the maximum.
However, this is not the case for everyone. People might first wonder how much estate tax they will pay. Although there are different brackets for estate tax, what actually happens is that everyone ends up paying 40 percent on the amount that is above the estate tax. This is because of the way that the tax credit structured.