What are the Taxes if I Leave a Bequest to Family in Israel?
Photo by Raimond Klavins on Unsplash
Question:
I want to bequest some funds to my family members in Israel after my death. I live in California. Will there be taxes to pay from my estate if I leave money to a foreigner living in Israel? I understand that the beneficiary can receive tax free inheritance. But as the donor, will I have to pay taxes on the gift?
Response:
No, unless if you’re giving away a very large estate. The federal estate tax threshold is now (in 2022) $12 million. So your estate would have to be bigger than that for you to have to pay any federal estate tax. California, unlike some other states, has no estate tax. The fact that your family members live in Israel does not affect taxation.
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