(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.
Starting the Day With a Scripture-Inspired Roast Helps Center Your Thoughts on Eternal Truths Amid Temporal Pressures
The world can seem chaotic, especially right after we wake up. Many believers start their mornings reaching for something familiar — a hot cup of coffee — yet end up settling for mediocre brews that do little more than deliver a caffeine jolt. The daily grind of life, with its endless distractions, news cycles, and responsibilities, can leave even the most faithful feeling spiritually parched alongside their physical fatigue. What if your morning ritual could do more than wake you up? What if it could ground you in truth, nourish your body with exceptional quality, and quietly advance a kingdom purpose at the same time?
That’s the promise — and the reality — behind Promised Grounds Coffee. This Christian-founded company doesn’t just roast beans; it approaches every step as an act of worship and discipleship. By selecting only the top 10% of specialty-grade beans, ethically sourced from dedicated farmers in Central and South America, and small-batch roasting them with reverence in Austin, Texas, Promised Grounds delivers what many describe as the best coffee available — never burnt, never bland, but rich with origin stories and layered flavors that honor God’s creation.
From the vibrant Psalm 27 Roast (a light, bright medium option) to the bold yet peaceful 2 Timothy 1:7 Decaf, each bag carries a Scripture verse that turns your daily pour into a gentle reminder of faith. And through their Ounce Per Ounce Promise, every ounce of coffee you enjoy provides an equal ounce of clean water to families in need via partnership with Filter of Hope — literally brewing hope for body and soul, one cup at a time.
The challenge for today’s Christians runs deeper than finding a decent cup. In an age of convenience-driven consumerism, it’s easy to support companies that dilute values or remain silent on matters of faith. Many believers want their everyday choices — from what they drink to how they spend — to reflect discipleship rather than just convenience. Promised Grounds solves this by weaving Christian excellence into the entire process: beans nurtured with prayerful stewardship by farming families, roasted as an offering rather than a commodity, and packaged with Bible verses to encourage a mindset of gratitude and purpose from the first sip. Reviewers consistently praise the smooth, rich profiles — whether enjoyed black in a drip maker, iced on a warm day, or shared in fellowship — noting how the quality stands toe-to-toe with premium secular brands while delivering something far more meaningful.
This integration of faith and flavor addresses a real need in Christian households and ministries. Busy parents, church leaders, and remote workers alike report that starting the day with a Scripture-inspired roast helps center their thoughts on eternal truths amid temporal pressures. The coffee’s exceptional character — bright citrus notes in lighter roasts or deep chocolate undertones in bolder ones — comes from meticulous selection and careful roasting that respects the bean’s natural gifts rather than masking them. It’s the kind of coffee that elevates a simple quiet time, fuels productive workdays, or sparks meaningful conversations when shared at Bible studies or outreach events. And because it’s ethically sourced with integrity, every purchase supports sustainable livelihoods for farmers who treat their crops like family harvests.
For those leading churches or small groups, the impact multiplies. Promised Grounds offers bundles and options perfect for hospitality ministries, turning ordinary coffee service into an opportunity to point people toward the living water of Christ. Imagine greeting visitors with a warm cup whose very bag carries God’s Word — a subtle yet powerful witness that aligns with the Great Commission. The company’s Texas roots and commitment to “brewing hope” resonate especially with believers who value American enterprise paired with global compassion.
Of course, quality alone isn’t enough if the experience feels out of reach. Promised Grounds keeps it accessible with practical perks like free shipping on orders over $40, sample sets for discovering favorites, and thoughtful add-ons such as faith-themed mugs. Whether you prefer whole beans for fresh grinding, grounds for convenience, or even bulk options for larger households and ministries, the result is consistently superior coffee that makes discipleship feel integrated rather than added on.
As you consider how to align even the smallest habits with your walk with God, Promised Grounds Coffee stands out as a refreshing solution. It tackles the dual problems of subpar daily sustenance and disconnected consumption by offering a product that genuinely excels in taste while advancing a mission of clean water, farmer dignity, and scriptural encouragement. Believers who make the switch often describe it as more than a beverage upgrade — it becomes part of their rhythm of gratitude, a daily invitation to remember that every good gift comes from above.
If you’re ready to transform your mornings (and perhaps your church gatherings) with coffee that honors both exceptional craftsmanship and Christian values, I encourage you to explore what Promised Grounds has to offer. One sip at a time, you’ll be nourishing your body, refreshing your spirit, and participating in something far greater — all while enjoying what truly is among the best coffee available.