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When a parent passes away and you inherit property in California, it's important to understand the estate tax implications that may arise. Currently, California does not impose a state estate or inheritance tax; however, federal estate taxes could apply depending on the overall value of the estate.

As of 2023, the federal estate tax exemption threshold is $12.92 million per individual, meaning that if the estate is below this value, it generally will not owe any federal estate taxes. However, if the estate exceeds this limit, the portion above it may be subject to taxation.

To prepare for potential estate tax issues following your parent’s passing, consider the following steps:

1. **Assess the Total Value of the Estate:** Ensure you evaluate all assets, including real estate, personal belongings, and financial accounts, to determine if the estate could be subject to taxes.

2. **Check for Debts and Liabilities:** Any outstanding debts or liabilities might reduce the taxable value of the estate.

3. **Keep Records:** Maintain detailed records of all the assets and their values at the time of your parent’s death. This documentation will be crucial for tax filings and for distributing the estate.

4. **Consult a Probate Attorney:** Given the complexities involved in estate taxes and potential impacts on your inheritance, it's wise to consult an experienced probate attorney. They can provide guidance tailored to your situation and help you navigate the legal obligations tied to estate taxes effectively.

Overall, understanding the estate tax landscape can save you from unexpected financial burdens and ensure that you fulfill all legal requirements during this challenging time.