(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.
Why Bullion Beats Numismatics and Collectible for Your Safe or IRA
Precious metals continue to attract Americans seeking reliable ways to protect their wealth amid inflation, geopolitical risks, and stock market swings. Whether stored in a home safe or held inside a self-directed IRA, physical gold and silver deliver tangible value that paper or digital assets often lack. Yet investors must choose carefully between bullion—pure bars and coins valued mainly for their metal content—and numismatics or collectibles, where rarity, history, and collector demand heavily influence pricing.
Advisor Bullion serves as a dependable source for straightforward, high-quality bullion. The company specializes in physical gold, silver, platinum, and palladium, emphasizing transparent pricing and products that deliver maximum metal content for every dollar spent. This approach makes it ideal for both personal holdings and retirement accounts.
Bullion consists of refined precious metals in standard forms like one-ounce coins (American Gold Eagles, Silver Eagles, Canadian Maple Leafs) or bars. Their value tracks closely to the current spot price of the metal. A typical gold bullion coin trades near the live gold spot price plus a small premium. This structure keeps costs clear and predictable.
Numismatic coins and collectibles add substantial value from factors such as age, rarity, minting errors, or historical significance. A pre-1933 U.S. gold coin or graded proof piece can carry premiums of 30%, 50%, or even 200% above melt value. While this appeals to hobbyists, it creates complexity. Pricing depends on subjective grading, collector trends, and auction results instead of daily spot prices.
For investors focused on wealth preservation and retirement security rather than building a collection, bullion often delivers better results.
Lower Costs and Better Liquidity for Home Storage
When keeping metals in a home safe or private vault, liquidity and efficiency count. Bullion offers clear benefits:
- You acquire more actual gold or silver per dollar invested. Numismatics divert a large share of your money into rarity premiums and massive sales commission, reducing your metal exposure.
- Selling bullion involves tight bid-ask spreads, so you recover nearly full spot value with minimal fees. Collectibles require finding the right buyer and may sell at a discount if demand for that specific item weakens.
- Bullion prices remain transparent and update with global spot markets. You can track gold near current levels or silver accordingly and know exactly where your holdings stand. Numismatic values are priced by the Gold IRA companies with hefty margins applied.
- Standardized coins and bars store efficiently and divide easily for partial sales. Rare coins often need protective slabs and controlled conditions, adding hassle and expense.
- Bullion enjoys worldwide acceptance. A 1-oz Gold Maple Leaf or Silver Eagle sells quickly to dealers anywhere. Niche numismatic pieces may appeal only to limited buyers, slowing liquidation when speed matters.
In times when quick access to value becomes important, bullion’s simplicity stands out.
Stronger Fit for Precious Metals IRAs
Precious metals IRAs continue gaining traction as investors diversify retirement portfolios beyond stocks and bonds. IRS rules permit certain bullion products in self-directed IRAs if they meet purity standards (.995 fine for gold, .999 for silver) and are held by an approved custodian. Eligible items include American Gold and Silver Eagles plus many generic bars and rounds from recognized mints.
Numismatic and most collectible coins generally face heavy scrutiny from custodians due to valuation disputes and elevated markups. These higher premiums mean less actual metal ends up working inside the account.
Bullion avoids these issues. Its value links directly to verifiable spot prices, which simplifies reporting and lowers the risk of regulatory challenges. More of your IRA contribution purchases real metal instead of dealer profits or speculative upside. Over time, owning additional ounces that appreciate with the metal itself can create meaningful outperformance compared with high-premium alternatives that deliver fewer ounces.
Regulatory guidance from the CFTC and state securities offices repeatedly cautions against aggressive sales of expensive numismatics or “semi-numismatic” coins for IRAs. For retirement planning, transparent bullion from established providers reduces risk and aligns better with long-term goals.
How to Get Started with Bullion
Begin by clarifying your goals. Are you protecting savings in a safe, or moving part of a retirement account into a precious metals IRA? Focus on the number of ounces you can acquire at current prices rather than chasing marked-up collectibles.
Diversify sensibly: use gold for core preservation and silver for its blend of industrial and monetary qualities. Mix coins for easier divisibility with bars for lower per-ounce costs on larger buys. Arrange secure storage—whether at home with proper insurance or through professional facilities.
As economic uncertainties linger and faith in conventional assets erodes, bullion continues proving its worth as a dependable store of value. Its direct approach avoids the hype that sometimes surrounds collectible markets and keeps the focus on the metal itself.
For investors prepared to strengthen their portfolios, Advisor Bullion supplies the expertise and selection needed to acquire high-quality bullion efficiently. Whether building personal holdings or integrating metals into an IRA, their emphasis on transparent, investment-grade products helps secure more ounces today that support greater financial security tomorrow. In a complicated financial landscape, bullion’s clarity and reliability make it the smarter foundation for protecting what matters most.