Will my heirs owe taxes on my estate?

If you intend to leave all of your assets to your spouse, estate taxes aren't an issue: You can leave an unlimited amount of money to your spouse tax-free. Otherwise, your estate will owe taxes only if its value - including real estate, life insurance proceeds, retirement accounts and investments - exceeds a certain threshold, known as the estate tax exemption.

SB 378 levies a California estate tax on estates ranging from $3.5 million ($7 million for married couples) up to the current federal exemption level of $11.4 million ($22.8 million for married couples). If your estate is large enough to trigger the estate tax, only the amount that exceeds the exemption will be taxed. You would need to consult your financial advisor to determine whether your estate is large enough to trigger taxes.