Estate planning is an important part of building financial security and managing your financial legacy. A customized estate plan is a great tool for making the most of your present as well as planning for the future. A comprehensive estate plan can help you think ahead and develop a strategy for things like estate taxes.
Georgia does not have an estate tax or an inheritance tax. This means that if you are a resident of Georgia at the time of your death, your heirs will not pay taxes to the state. However, if your estate meets the threshold of $13.99 million per individual in 2025, then your estate will be subject to federal estate taxes. Our Atlanta estate planning attorneys can work with you to devise strategies to reduce taxes and achieve other goals now and after you are gone.
Brightside Estate & Elder Law works with individuals and families to help them plan for the future – and your present. We work collaboratively with our clients to help them build a plan that makes their lives better now and that will honor their legacy in the future. To learn more or to schedule a consultation, contact our law offices today.
What Is an Estate Tax?
An estate tax is a tax that is paid by a person’s estate after their death. In the United States, just 12 states (and the District of Columbia) have a state-level estate tax. Georgia is not one of those states. If you pass away as a resident of the state of Georgia, then the state will not impose a tax on your estate.
There is a separate type of tax that is associated with estates: an inheritance tax. This tax is paid by the beneficiary of an estate (the heirs). Just 6 states have an inheritance tax, which includes Maryland – the only state to have both an estate and an inheritance tax. Georgia does not have an inheritance tax.
Because Georgia does not have an estate or an inheritance tax, neither your estate nor your heirs will pay estate or inheritance taxes to the state. However, the federal government does impose an estate tax on estates with a value over a certain amount.
For 2025, the threshold for an individual is $13,990,000. If the value of your estate exceeds this amount, then the estate (not your heirs) will pay a federal estate tax after you pass away. Any amount above the threshold will be taxed at a rate of 18 to 40%. There is a graduated scale for the federal estate tax based on the value of the estate.
The Big Beautiful Bill, enacted July 4, 2025, increased this threshold to $15,000,000 per individual for 2026 and made the change permanent. The bill will use calendar year 2025 as the base year for future inflation adjustments to this exclusion.
Although Georgia doesn’t have estate or inheritance taxes, residents may still be subject to federal estate taxes. If you have a large amount of assets, it is important to consider how federal estate taxes might impact your loved ones. With thoughtful estate planning, it’s often possible to preserve more of your estate for your loved ones and minimize federal tax exposure.
Estate planning is also critical because certain assets can subject your heirs to other types of taxes. For example, any income that is generated from inherited assets (such as rental income from real estate or dividends from stocks) would be subject to federal and state income tax. In addition, if you plan to pass down any assets that are comprised of pre-tax contributions (such as 401(k)s and IRAs), there may be tax implications for your heirs.
Our law firm can help you develop a smart estate plan that addresses these and related issues. By being proactive, you can create a more financially secure present and establish an incredible legacy in the future.
Is It Possible to Avoid Paying Federal Estate Taxes in Georgia?
There are ways to avoid federal estate taxes. Broadly, this involves reducing the value of your estate so that it either is under the federal exemption or as little as possible is taxable.
One option that many people consider is making financial gifts to reduce the value of their estate. In 2025, the annual gifting tax exclusion is $19,000. This means that you can give up to $19,000 to as many people as you want without any gift tax liabilities. Married couples can give up to $38,000 without this amount being taxable. Importantly, certain gifts – such as donations to nonprofits and political organizations – are exempt from gift taxes.
Gifting should be part of a broader estate plan. If you give above the annual exclusion to any single person, then you will reduce your lifetime gifting tax exemption. This will lower the amount available upon your death to lower your estate tax liability. Our Atlanta estate planning lawyers can help you develop a gifting strategy so that you can lower the taxable value of your estate without bumping into any gift tax exemption limits.
A related strategy can be to fund an educational or custodial account for your children and/or grandchild. You can contribute up to $19,000 annually without triggering the federal gift tax. You could also fund a custodial account under the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA). These accounts are subject to the same limit to avoid the gift tax.
Another strategy that many people employ is to make charitable donations. As noted above, these donations are not subject to gift taxes. These donations can be made during your lifetime (which may reduce taxes) or upon your death. We can help you plan charitable donations as part of your overall estate plan in a way that makes sense for you and your loved ones.
There are multiple other ways that you can reduce your taxable estate to avoid federal estate taxes. The key is often to lower the amount of assets that are transferred through the probate process. Any assets that are left to an heir as part of your will are subject to probate, which is the formal legal process through which assets are transferred to heirs. With careful estate planning, you may be able to reduce or even eliminate the number of assets that go through probate. This can (in some circumstances) reduce estate taxes.
First, it is often possible to create a trust to reduce the value of your taxable estate. There are many different types of trusts, but one common type used in estate planning is a revocable living trust. This type of trust can be created while you are still alive, giving you the power to control and access trust assets during your lifetime. It can also be amended or revoked at any time. Importantly, revocable trusts are an important estate planning tool, but they will not reduce the taxable value of your estate.
When the trust creator (grantor) dies, the trust will then become irrevocable. The trust assets will then be managed and/or distributed according to the grantor’s instructions. A living trust allows you to put your assets into a trust while still being used for your benefit during your life. It then ensures that these same assets do not go through probate.
Many living trusts are paired with another legal instrument: a pour-over will. This is a special type of will that directs all probate assets to go to the trust upon your death. The estate is then managed through the trust instead of through probate.
Significantly, assets in a living trust will still be considered for estate tax purposes because you still maintain control over them during your lifetime. If you want to reduce your taxable estate, then you may choose to put assets into an irrevocable trust. The assets held by this type of trust will not contribute to the overall value of your estate.
Depending on your unique circumstances, there are many other options when it comes to reducing or avoiding federal estate taxes. For example, if you have a loved one with disabilities, then you may establish a special needs trust for them. This type of trust can serve the dual goal of providing for your family member in the future while minimizing or avoiding estate taxes.
There are a few other strategies that you can utilize to reduce your taxable estate. For example, you can designate beneficiaries on financial accounts such as 401(k)s and IRAs. When a retirement account has a named beneficiary, then it will take precedence over the will. As a result, it will transfer to the named beneficiary rather than going through probate.
You can also title your assets in a way that they pass to an heir instead of going through probate. Assets (including financial accounts and real estate) can be titled in different ways, including individually, jointly with rights of survivorship, or as tenants in common. Assets that are owned jointly with rights of survivorship won’t go through the probate process, which can help to reduce the value of your taxable estate.
For example, if you change your savings account so that your adult child has a right of survivorship, then they will own the account after you pass, without going through probate. You could also use a transfer-on-death (TOD) deed, which allows a parcel of real estate to go directly to a named beneficiary upon your death.
Keep in mind that changing the named beneficiary on your assets has significant drawbacks. This includes needing to update beneficiary designations if your desired beneficiary changes or predeceases you. It also isn’t ideal to name a minor child or a disabled person as a beneficiary, as it could affect the beneficiary’s right to benefits (for a disabled person) or require costly legal work for someone to manage the assets for them. In some cases, assets with named beneficiaries could still be reachable by certain creditors, which is why it’s helpful to design your estate plan with these possibilities in mind.
Estate planning involves several complicated legal areas, including probate law and federal and state tax law. If you want to set up your estate to minimize the amount of taxes paid after your death, you should consult with an experienced Atlanta estate planning attorney. Our law firm can work with you to help you evaluate your full range of options and develop a plan based on your specific circumstances and goals.
Smart Estate Planning to Avoid Taxes and More
Many people hope to ensure that as much of their wealth as possible goes directly to the people and causes they care about. A careful estate plan can often help to reduce or eliminate the taxes that your estate or heirs might pay on the assets that they inherit from you. Our customized estate planning solutions can help you avoid legal issues while protecting your legacy.
At Brightside, we work with clients in the greater Atlanta area to help them develop comprehensive estate plans that address everything from business succession to elder law. We take the time to listen to you so that we understand what you want to accomplish with an estate plan before offering our advice on how to achieve those goals. To learn more or to talk to an Atlanta estate planning attorney, give our law firm a call at 404-492-9559 or fill out our online contact form.