Estate and Inheritance Tax in California

California has no state estate tax and no inheritance tax. What can apply is the federal estate tax, and after the 2026 law it only touches estates well into the millions — most families owe nothing. What matters far more for the average estate is the income-tax side: the step-up in basis on inherited property, capital gains when heirs sell, and property-tax reassessment under Prop 19. These guides sort the tax that rarely applies from the tax that usually does, cover the tools that still make sense at higher net worth, and flag the figures that changed for 2026. If you are not sure which rules touch your estate, talk to Eric.

The federal estate tax

• CA Dynasty Trusts: Benefits Guide 2026 — The Benefits of Establishing a Dynasty Trust in California If you're considering ways to preserve and protect your wealth for future…
• CA Estate Planning for Non-Citizens — Non-citizen estate planning in CA: $60K NRA exemption, QDOT for non-citizen spouses, $194K gift limit. Free consult with Ridley Law.
• Do I Still Need My Old A/B (Bypass) Trust in California? — For most CA couples an old mandatory A/B trust is now unnecessary and can cost a second step-up. 2026 exemption is $15M/person. (805)…
• Do You Still Need a SLAT After the 2026 Tax Law? (California) — The 2026 exemption sunset that drove SLAT urgency was repealed. When a spousal lifetime access trust still makes sense in California — and…
• Estate Planning: Non-Citizen CA Guide 2026 — Estate Planning for Non-Citizens in California: A Comprehensive Guide Estate planning can often seem daunting, especially if you're a…
• Estate Tax Portability in California: The 706 Most Families Skip — Portability lets a surviving spouse keep the first spouse's unused $15M exemption — but only if you file a 706. The real 5-year deadline…
• Gift Tax in 2026: What California Families Can Give Tax-Free — In 2026 you can give $19,000 per person tax-free and the lifetime exemption is $15 million (permanent). California has no gift tax — but…
• Non-Citizen Spouse and the Estate Tax: The QDOT Rule (California) — The unlimited marital deduction doesn't apply to a non-citizen spouse. How a QDOT defers the estate tax, the $194,000 gift limit, and who…
• What Is a QTIP Trust — and Do Blended Families Need One? (California) — A QTIP trust provides for a surviving spouse for life while locking in who inherits at the end — the classic blended-family tool. How it…

Income and property tax

• Can a Nevada Trust Avoid California Income Taxes? — Mostly no — California taxes trusts based on where fiduciaries and beneficiaries live, and its throwback rule catches accumulated income.…
• Capital Gains on an Inherited House in California (2026) — Do you pay capital gains on an inherited California home? How the step-up in basis works, the community-property double step-up, and why…
• Do Irrevocable Trust Assets Get a Step-Up in Basis at Death? — Only if the assets are included in the taxable estate — Rev. Rul. 2023-2 settled it. What that means for California families, plus the co…
• Does a Living Trust File a Tax Return? (California, 2026) — While you're alive, a revocable living trust files no separate tax return and needs no EIN. What changes after death, the Form 1041, and…
• Inheriting an Annuity in California: Your Options and the Tax — Inherited an annuity? Your payout options under IRC 72(s), why annuities get no step-up in basis, and how the gain is taxed as ordinary…
• Who Files a Deceased Person's Final Tax Return in California? — Someone still has to file the year-of-death tax returns. Who signs, when Form 1310 is needed, and when the estate needs its own return (f…

More guides

• 2026 Legacy Guide: Wishes to Your Heirs — How to Effectively Communicate Your Legacy Wishes to Your Heirs Planning for the future often involves making decisions that will impact…
• 2026 Tax Guide: Trust Changes Explained — Hello there! I'm Eric Ridley, an estate planning lawyer from California. Today, let's talk about something that puzzles many: how do…
• 7 Inheritance Tax Myths California Families Need to Know — Uncover 7 common inheritance tax myths that can cost California families. Learn the facts and protect your estate and loved ones with…
• CA Asset Protection: Avoid Lawsuits — Living in California comes with financial challenges, especially taxes and other liabilities that can affect your hard-earned assets. Here…
• CA Estate Planning Without Heirs
• CA Will Contests: Protect Your Will 2026 — Creating a will is an essential step in ensuring your estate is handled according to your wishes. However, the fear of your will being…
• Do California Trusts and LLCs Have to File a BOI Report? (2026 Update) — As of 2026, U.S.-formed LLCs and California trusts do not file a FinCEN BOI report — the March 2025 rule change exempted domestic entities…
• Estate Planning: First Meeting Prep — How to Prepare for Your First Meeting with an Estate Planning Attorney Embarking on the journey of estate planning can feel daunting, but…
• Estate Tax Planning: A 2026 Guide — You may not realize how tax obligations can significantly impact your estate planning. Understanding the nuances of estate taxes, gift…
• How Estate Planning Attorneys Can Help with Tax Planning — Understanding the Role of an Estate Planning Attorney Estate planning attorneys are often associated with drafting wills and trusts, but…
• How to Minimize Taxes Through Estate Planning — Understanding the Basics of Estate Planning Estate planning is the process of organizing and managing your assets to ensure they are…
• Is a QPRT Still Worth It in 2026? A California Reality Check — Qualified personal residence trusts made sense when the estate tax exemption was lower. With $15M per person now permanent, most Californ…
• Spendthrift Trust Guide 2026: Secure Heirs — Why a Spendthrift Trust Can Be a Great Solution for Your Heirs