Estate Planning Cost Calculator — United States 2026
Planning ahead — understand the costs of administering an estate.
Estimate the full cost of administering a US estate, including probate, executor fees, estate tax, and inherited-asset treatment so you can see what beneficiaries may actually receive.
United States Estate Planning Notes
US estate costs are often driven by probate, executor compensation, whether the estate approaches federal or state estate-tax thresholds, and how inherited assets receive a stepped-up basis.
This version is tuned to US estate planning, where probate process, estate-tax exposure, and the treatment of inherited property or brokerage assets matter more than you might expect.
US setup: this estate planning is tuned for dollar-denominated scenarios, American payroll and tax references, state-by-state cost differences, and the finance terms people see in lender, employer, or IRS-facing documents.
The page keeps US language in place where it is relevant, including IRS, federal withholding, FICA, 401(k), sales tax, miles, APR, down payment, paycheck, state tax, and USD totals.
Treat the answer as a United States estimate; before acting, compare it with provider disclosures, state rules, federal guidance, lender underwriting, payroll settings, or advice from a qualified professional.
Estimates only. Estate costs vary significantly by state, asset composition, and whether a valid will exists. Seek legal advice for your specific situation.
Capital-gains tax on inherited assets is shaped by one powerful rule: the stepped-up basis. When someone dies, most assets are revalued to their fair-market value on the date of death, so an heir’s taxable gain is measured from that new (higher) basis — not from what the deceased originally paid.
Inherited stocks, funds, and real estate get a cost basis reset to their date-of-death value. If heirs sell soon after, there is little or no capital-gains tax — the deceased’s unrealized gains are wiped out. On a home bought for $150,000 and worth $550,000 at death, the $400,000 built-up gain escapes income tax entirely.
Inherited property is always treated as long-term, no matter how long the heir holds it. Any gain above the stepped-up basis is taxed at the long-term capital-gains rates of 0%, 15%, or 20% (plus the 3.8% net investment income tax for higher earners), never at the higher short-term rate.
Traditional IRAs and 401(k)s do not get a stepped-up basis. Withdrawals by heirs are taxed as ordinary income, and most non-spouse beneficiaries must empty the account within 10 years under the SECURE Act. Keep a record of each asset’s date-of-death value to support the basis.
Retirement accounts are the most commonly misunderstood part of estate planning. An IRA or 401(k) passes by beneficiary designation, not by your will — and the income-tax treatment depends entirely on who inherits it and how they draw it down.
A surviving spouse can roll an inherited IRA or 401(k) into their own account and is taxed only on withdrawals. Most non-spouse beneficiaries must empty the account within 10 years under the SECURE Act, with each withdrawal from a traditional account taxed as ordinary income. An inherited Roth is tax-free to withdraw, but the 10-year rule still applies.
The named beneficiary on your IRA, 401(k), and life-insurance forms controls who inherits — and it overrides your will. Review these forms after every marriage, divorce, birth, or death. A stale or blank beneficiary form is one of the most common (and avoidable) estate-planning mistakes.
Naming your estate (rather than people) as the retirement-account beneficiary usually forces a faster, higher-taxed payout and drags the account through probate. Naming individuals — or a properly drafted see-through trust — generally preserves the 10-year stretch. A financial adviser specializing in estate planning can model the best structure for your situation.
Most estate administration costs can be significantly reduced with preparation. The earlier planning starts, the more options are available.
Dying intestate (without a will) hands distribution to your state’s default rules, removes your control over who gets what, and typically adds cost and months of delay in probate. A properly drafted will costs $300–$1,000 with an attorney and is one of the highest-ROI legal documents you will ever sign.
Assets held in a revocable living trust pass to your heirs without going through probate — saving time, court fees, and keeping your affairs private. A full package (trust, pour-over will, powers of attorney, healthcare directive) typically runs $1,500–$3,500, more than a simple will but often worth it for larger or multi-state estates.
A testamentary trust created by your will can hold assets for young beneficiaries until they reach an age you choose, rather than handing a lump sum to an 18-year-old. For larger estates, a bypass (credit-shelter) trust can preserve a deceased spouse’s estate-tax exemption. These add to drafting cost but can save far more — work with an estate attorney.
Methodology — probate, executor fees, estate tax, and inherited-asset treatment
What is included in the estimate
The estimate shows your federal estate tax: the value of your estate, minus debts and the unlimited marital and charitable deductions, minus the 2026 lifetime exemption ($15M per person, or about $30M for a married couple using portability), taxed at up to 40% above that. It also estimates settlement (executor and probate) costs.
What is not included
The estimate does not include: state estate or inheritance taxes (about a dozen states and DC levy these, with much lower thresholds), income tax owed on inherited retirement accounts, gift tax on prior lifetime gifts beyond the exemption, or contested-will litigation. These can be significant and require professional advice.
Settlement & executor costs
| Executor type | Typical fee |
|---|---|
| Probate (court-supervised) | ~3–7% of the estate in many states → Court fees, executor commission, and attorney fees |
| Revocable living trust | Avoids probate on trust assets → Higher setup cost, lower settlement cost, stays private |
| Beneficiary designations / joint title | Pass outside probate automatically → Retirement accounts, life insurance, TOD/POD accounts |
Which states add their own estate or inheritance tax
There is no federal estate tax below $15M (2026). But about a dozen states and Washington, DC impose their own estate or inheritance tax, often with far lower thresholds. If you live in one of these states, your estate can owe state tax even when no federal tax is due.
| State | Fee structure (key thresholds) |
|---|---|
| Oregon, Massachusetts | Estate tax from ~$1M–$2M |
| Washington | Estate tax from ~$2.193M (top rate 20%) |
| New York, Illinois, Minnesota | Estate tax from ~$2M–$7M |
| Connecticut, Maine, Hawaii, Vermont, Rhode Island | Estate tax, various thresholds |
| Pennsylvania, New Jersey, Kentucky | Inheritance tax (paid by beneficiaries; spouses exempt) |
| Nebraska, Iowa, Maryland | Inheritance tax (rates depend on relationship) |
| Most other states | No state estate or inheritance tax |
| Federal | $15M exemption (2026), 40% above |
Check your own state — thresholds and rates change. Assets held in joint title or with a named beneficiary (retirement accounts, life insurance, TOD/POD accounts) pass outside probate automatically, but they still count toward your taxable estate for federal and state estate tax.
How heirs are taxed on inherited property, stocks, and retirement accounts
Step-up in basis
When you inherit an asset, its cost basis is “stepped up” to its fair-market value on the date of death. If heirs sell soon after, there is little or no capital-gains tax — the deceased’s unrealized gains are wiped out. This applies to homes, stocks, and most appreciated property and is one of the most valuable features of the US system.
Selling an inherited asset later
If heirs hold an inherited asset and it grows further, only the gain above the stepped-up basis is taxable when sold — at long-term capital-gains rates (0/15/20%), because inherited property is automatically treated as long-term. Keep a record of the date-of-death value to support the basis.
Inherited retirement accounts (IRA / 401k)
| Recipient | Tax on inherited retirement account |
|---|---|
| Surviving spouse | Can roll into their own IRA; taxed only on withdrawal |
| Most non-spouse heirs | Must empty within 10 years (SECURE Act); withdrawals taxed as income |
| Roth IRA | Withdrawals tax-free, but the 10-year rule still applies |
| Estate as beneficiary | Often forces faster payout — name people, not your estate |
| Life insurance | Income-tax-free to beneficiaries (but counts toward the taxable estate) |
How to reduce estate administration costs and tax for your beneficiaries
Five steps that have the most impact
- Use the marital deduction + portability — leave assets to a US-citizen spouse tax-free and file Form 706 to carry over their unused exemption (up to ~$30M per couple)
- Gift during your lifetime — up to $19,000 per person per year (2026) is gift-tax-free and moves wealth out of your taxable estate
- Keep beneficiary designations current — retirement accounts and life insurance pass by beneficiary form, not your will
- Consider a revocable living trust — avoids probate, keeps your affairs private, and speeds up settlement
- For larger estates, see an estate attorney — the $15M exemption was made permanent and inflation-indexed by the 2025 tax law, but irrevocable trusts and charitable strategies can still shrink a taxable estate well before it reaches that threshold
What estate documents cost
A basic will costs roughly $300–$1,000 with an attorney (less with reputable online tools). A revocable living trust package (trust, pour-over will, powers of attorney, healthcare directive) typically runs $1,500–$3,500. Dying intestate hands distribution to state law and usually costs far more in probate and delay.
❓ Frequently asked Frequently asked questions
Is there inheritance tax or estate tax in the United States?
The United States has a federal estate tax, but it only applies to estates above the 2026 exemption of $15 million per person (about $30 million for a married couple using portability), so more than 99% of estates owe nothing at the federal level. There is no federal inheritance tax, but about a dozen states and Washington, DC levy their own estate or inheritance tax with much lower thresholds. Separately, heirs may owe capital-gains tax if they later sell inherited assets that keep rising in value, and withdrawals from inherited traditional retirement accounts are taxed as ordinary income.
What does probate cost in the United States?
Court filing fees vary by state and estate size, from near $0 for small estates to a few thousand dollars for large ones. The bigger cost is usually attorney and executor compensation — commonly 1–5% of the estate, and higher in states that set fees as a statutory percentage of estate value (such as California). Total probate and legal costs for a typical estate often run $3,000–$8,000, and more for contested or complex estates.
Do IRAs and 401(k)s pass through the estate?
Usually not. An IRA, 401(k), or life-insurance policy passes directly to whoever you name on its beneficiary form — bypassing your will and probate entirely. That named beneficiary overrides your will, so a stale or blank form is a real risk. Updating your beneficiary designations after any marriage, divorce, birth, or death is one of the most important (and free) estate-planning steps you can take.
Do I pay capital-gains tax when I inherit property?
Not when you inherit it — only if you later sell. Inherited property gets a stepped-up cost basis equal to its fair-market value on the date of death, so if you sell right away there is usually little or no taxable gain. If you hold it and it keeps appreciating, only the gain above that stepped-up value is taxable when you sell, and it is automatically taxed at the lower long-term capital-gains rates (0%, 15%, or 20%).
What is a testamentary trust?
A testamentary trust is a trust created by your will that comes into existence when you die. It is most often used to hold assets for minor or young-adult children until they reach an age you set, or to provide for a beneficiary with special needs, rather than handing over a lump sum outright. It gives you control over timing and conditions but only takes effect after probate. Drafting one adds a few hundred to a couple of thousand dollars to a will — an estate attorney can advise whether it fits your situation.
How long does estate administration take in the United States?
A simple estate with a valid will, no disputes, and straightforward assets typically takes 6–12 months from death to final distribution. Estates requiring probate, with property to sell, or with complex assets typically take 12–18 months. Contested estates or dying without a will can take 2–5 years. The largest single cause of delay is absence of a valid will.