Estate Tax

## Estate Tax

Estate tax (called inheritance tax in some countries) is levied on the total value of a deceased person's assets — real estate, investments, cash, and other property — before they are transferred to heirs.

### US Estate Tax (2025)

- **Exemption**: $13.99 million per individual ($27.98 million per married couple).
- **Rate**: 40% on amounts above the exemption.
- **Sunset**: The TCJA doubled exemption expires after 2025 (may revert to ~$7 million).

### Global Comparison

| Country | Top Rate | Exemption |
|---------|---------|----------|
| Japan | 55% | ¥30M + ¥6M/heir |
| South Korea | 50% | KRW 500M |
| UK | 40% | £325,000 + £175,000 (residence) |
| US | 40% | $13.99M |
| Germany | 30% | €500,000 (spouse) |
| Australia | 0% | N/A |
| Canada | 0% (deemed disposition) | N/A |

### Relevance to Compensation

Estate tax planning affects equity compensation: employees with significant vested stock should consider estate planning strategies like trusts and gifting programs.