California Estate Taxes

The California estate tax is equal to the state tax credit under the federal estate tax laws. There are no additional estate taxes imposed by the state.

Deductions. The following items are deducted from the estate for purposes of determining the taxable estate:

• property equal to the clear market value of decedent's separate property, if transferred to a surviving spouse
• decedent's debts
• expenses of last illness
• funeral expenses
• state, county, and municipal taxes and assessments which are a lien at date of death
• administrative expenses
• property loss due to fire, earthquake, landslide or other casualty not compensated by insurance or otherwise, occurring after the decedent's death but prior to the order fixing the tax or prior to one year from the time of death (whichever is earlier)

Returns. In California, the Superior Court of the county in which the decedent last resided has jurisdiction to hear and determine all inheritance tax questions and assessments. The State Controller, however, may also determine the tax owed if no court proceeding is pending or is likely to be filed.

Copies of the will and inventory are the only returns required and must be filed with the State Controller. Any California estate tax that is due must be paid to the State Treasurer at the date of death.

Generation-skipping transfer tax. California imposes a generation-skipping transfer tax equal to the federal credit.