(The Epoch Times)—The estate tax is a tax on your right to transfer property at the end of your life. It encompasses an accounting of everything you own or have an interest in on the date of your death. If you die in 2025, according to the IRS, and the value of your estate exceeds $13.99 million, it will be subject to an estate tax.
But there are ways to minimize the estate tax that you should be planning before you pass. From trusts to life insurance, you can ensure the federal government, and, in some cases, the state, take less of your hard-earned money.
Difference Between Estate Tax and Inheritance Tax
An estate above a certain dollar amount can be taxed by the federal government. According to U.S. Bank, the federal tax rate ranges from 18 percent to 40 percent.
However, inheritance is not taxed by the federal government. There is an exception.
If you earn money from that inheritance, the money you earn can be taxed. For example, if you inherit one million dollars, you are not taxed on it. But if you deposit it in the bank and it earns five percent, that additional $50,000 will be taxed.
However, some states do levy an inheritance tax. According to the Tax Policy Center, these states include:
- Iowa (phases out to repeal in 2025)
- Kentucky
- Nebraska
- Maryland
- New Jersey
- Pennsylvania
According to the Tax Policy Center, Maryland is the only state with an estate and inheritance tax.
Life Insurance to Pay Estate Taxes
You can establish a trust that will own an insurance policy on your life. You will make payments to the trust, which will be used to pay the premium.
At death, the proceeds are exempt from estate taxes if the trustee adheres to IRS requirements. The proceeds from the life insurance can be used to pay the estate taxes.
Irrevocable Trust Avoids Taxes
Once created, an irrevocable trust can’t be changed or terminated. Establish an irrevocable trust when you do your estate planning. You can make most trusts irrevocable.
This type of trust offers your assets the most protection from creditors and lawsuits. According to the Federal Long Term Care Insurance Program, the assets in an irrevocable trust aren’t considered personal property.
Because they’re not personal property, the assets aren’t included when the IRS values your estate to determine if taxes are owed.
These assets are also protected from creditors if you file for bankruptcy.
Charitable Trust Avoids Taxes
A charitable trust allows you to donate money in a tax-efficient way. A charitable trust acts like an irrevocable trust. That means that charitable trust assets aren’t considered personal assets and, therefore, aren’t susceptible to estate taxes.
There are two types of charitable trusts.
Charitable Lead Trusts
Charitable lead trusts let you put aside specific assets for one or more organizations. You then distribute the rest of your property to your other beneficiaries. Charitable lead trusts are irrevocable, so you can’t change them once you have put them in place. While not completely tax-exempt, they can significantly reduce estate taxes.
Charitable Remainder Trust
A charitable remainder trust (CRT) is an irrevocable trust you can use as an income source until your death. You place your assets into the CRT.
The assets in the CRT continue to be a source of income, but when you die, the remaining assets in the CRT are distributed to one or more charitable organizations.
Gifting Money Before Dying
You could gift assets to your beneficiaries before you die.
According to the IRS, the annual gift tax exclusion for 2025 is $19,000. This increased from $18,000 in 2024. Married couples can use gift-splitting to give up to $38,000 without the gift being considered taxable.
Remember that any amount you give over the annual limit is subtracted from the lifetime gift tax exclusion. For 2025, according to Morgan Lewis, the lifetime gift tax exclusion is $13.99 million or $27.98 million for married couples.
Fund a 529 or Custodial Account
If you have children or grandchildren, funding an education account for them could reduce your estate.
Contribution limits for 529s are set by states. But you can contribute up to $19,000 annually to them without triggering the gift tax, according to Fidelity Investments.
Do States Have Estate Taxes?
Twelve states collect estate taxes. These include, along with their top tax rate:
- Maryland – 16%
- Vermont – 16%
- New York – 16%
- Massachusetts – 16%
- Connecticut – 12%
- Rhode Island – 16%
- Washington – 20%
- Oregon – 16%
- Minnesota – 16%
- Illinois – 16%
- Hawaii – 20%
- Maine – 12%
The District of Columbia also collects estate taxes. Their top rate is 16 percent.
Minimizing Estate Taxes
The best course of action is to lay out a plan. That starts with knowing the estate tax rules of the state where you live. Know your options.
Determine what income you’ll need to live on, and then meet with an estate attorney to develop a plan.
Three Reasons a Coffee Gift Set From This Christian Company Is Perfect for Christmas
When you’re searching for a Christmas gift that’s meaningful, useful, and rooted in faith, you don’t want to settle for anything generic. This season is filled with noise — mass-produced products, last-minute picks, and trends that fade as quickly as they appear. But one gift stands apart because it blends genuine quality with a message that matters: a coffee gift set from Promised Grounds Coffee.
This small Christian-owned company has become a favorite among believers who want to support faith-driven businesses while giving friends and family something they’ll actually enjoy. Here are three reasons a Promised Grounds Coffee gift set may be the most thoughtful and impactful present you give this year.
1. It’s Truly Delicious Coffee
Too many “gift-worthy” coffees look beautiful in the package but disappoint when the cup is poured. Promised Grounds takes the opposite approach — exceptional taste first, thoughtful presentation second.
Their beans are sourced with care, roasted in small batches, and crafted to bring out a rich, smooth flavor profile that appeals to both casual drinkers and true coffee lovers. Whether someone enjoys bold, dark roasts or lighter, more delicate blends, every sip reflects quality that stands shoulder-to-shoulder with the biggest specialty brands.
Simply put: this coffee is good. Really good. Some say it’s absolutely fantastic. If you want a gift that won’t be re-gifted, ignored, or shoved in a cabinet, this is it.
2. It Spreads the Word While Serving a Real Purpose
There are many Christian gifts that are meaningful… but not exactly practical. There are also useful gifts that have nothing to do with faith. Promised Grounds Coffee bridges both worlds beautifully.
Each gift set delivers an encouraging, faith-centered message through its packaging and presentation — a simple but powerful reminder of God’s goodness during the Christmas season. The cups are especially popular and serve as a daily reminder of the blessings from our Lord. At the same time, the product itself is something people will actually use and appreciate every single day.
It’s a gift that uplifts the spirit and fills the mug. A gift that points loved ones toward Scripture while still being part of the normal rhythm of life. And in a culture that increasingly pushes faith to the margins, giving a gift that quietly but confidently honors Christ can make a deeper impact than you might expect.
3. It’s Affordable, Valuable, and Elegantly Presented
Many people want to give something meaningful without breaking their Christmas budget. Promised Grounds Coffee strikes that perfect balance — the sets look and feel premium, but the price remains accessible.
The packaging is classy, clean, and gift-ready, making it ideal for:
- Family members of all ages
- Co-workers or employees
- Church friends or small-group leaders
- Hosts, neighbors, and last-minute gift needs
It’s the kind of gift that feels more expensive than it is — and more thoughtful than most of what you’ll find on store shelves.
The Perfect Blend of Faith, Flavor, and Christmas Cheer
A coffee gift set from Promised Grounds Coffee checks every box: a gift that tastes amazing, conveys your faith, supports a Christian business, and brings daily enjoyment to the person who receives it. In a season when so many gifts are forgotten, this one stands out for all the right reasons.
If you want a Christmas present that reflects your values and delivers genuine joy, Promised Grounds Coffee is the perfect place to start.