If you are estate planning and are unfamiliar with the proceedings, you may wonder if avoiding probate proceedings would help lower the estate’s tax liability. Unfortunately, whether your estate goes to probate or not has zero affect on your estate’s tax planning. The two are very separate.
Probate is the court proceeding that is set up by the state. The sole purpose of probate proceedings is for the court to rule on the validity of your Will and to supervise how your estate plan is administered. There are costs and fees associated by probate, but taxes are not one of these.
Taxes are handled by the federal and state laws. The amount of taxes that will be due on your estate is determined by the laws of your state, how large your estate is, and who you leave your estate in the care of. Probate does not affect the tax liability on your estate in any way.
