SimplyTrust Knowledge Base

A: When you compare revocable trusts in California versus Nevada, you’ll find far more similarities than differences. Both states support the same flexible tool that helps families stay organized and avoid probate when assets are correctly titled. Where they diverge—probate cost pressure, community property details, and state tax context—mostly affects implementation, not whether one state’s revocable trust is inherently better. (Neither state has an estate tax or inheritance tax, by the way.)

A: No. California repealed its inheritance tax in 1982 through Proposition 6, and the measure also barred the state and local governments from imposing inheritance taxes going forward. California kept only a “pick-up” estate tax tied to a federal credit, which later phased out. As a result, inheritances received from someone who lived in California aren’t taxed by the state.

A: No. There’s no separate estate tax in California. If someone who lived in California passes, the only potential transfer tax is federal. For 2025, the federal basic exclusion amount is $13.99 million per person (roughly double for married couples using portability). Estates below that threshold owe no federal estate tax; estates above it may owe up to 40% on the amount over the exemption. Most Californians won’t owe federal estate tax, and there’s no additional state layer.

A: Both states are excellent homes for a modern, flexible plan. Revocable trusts in Alaska and Nevada share core benefits—probate avoidance, privacy, and administrative clarity. Alaska stands out for opt-in community property options and a long track record of trust innovation. Nevada is a community-property state and also draws attention for strong confidentiality practices and a deep directed-trust ecosystem.Although both states offer robust asset protection, Nevada's shorter statute of limitations (two years compared to Alaska's four) provides more immediate security. Moreover, Nevada provides better privacy protections, not mandating the public disclosure of trusts, contrasting with Alaska's more relaxed privacy standards.Choosing between these states may depend primarily on the specific needs of the trust creator regarding privacy, control, and flexibility.

A: Both Alaska and Nevada offer strong asset protection laws. However, Nevada is often preferred for its robust privacy provisions and shorter statutes of limitation.

A: The choice between Alaska and Nevada largely depends on individual needs for privacy, control, and jurisdictional preferences, with Nevada often being chosen for stricter privacy and flexible trust management laws.

A: Alaska does not levy a state inheritance tax (a tax on heirs) or a state estate tax (a tax on an estate before distribution). The Alaska Court System states it plainly: “As of 2005, Alaska no longer collects a state estate tax.”

A: Yes, federal estate taxes may apply based on the valuation of the estate. It is essential to consult with an estate planning professional to ensure compliance and optimal tax strategies.

A: South Carolina does not currently impose an inheritance tax. However, federal estate taxes may still apply to estates above a certain value.

A: The state phased out its inheritance tax post-2005 to align with changes in the federal tax code and promote a more growth-oriented financial environment.

A: Yes! Estate planning involves much more than just estate tax considerations. It includes creating a will or trust, designating beneficiaries, and making arrangements for the management of your assets in the event of incapacity. These are important regardless of whether your estate will be subject to federal estate tax.

A: No, Alaska does not have its own state estate tax. Alaskans are only subject to the federal estate tax.

A: The federal estate tax exemption is a substantial amount. That means only very large estates are subject to the tax. The amount changes regularly, so consult the IRS website for the most current figures.

A: The successor trustee to trustee shift means you become the point person for money, timelines, and communication. You don’t have to do everything yourself, but you have to make sure everything gets done. When you accept the role, you hold legal title to trust property. You must act loyally, prudently, and impartially. Which means you need to faithfully adhere to the trust document.