If
you live in one of the states with an estate tax, you need to take the tax into
account when planning your estate … Another state tax to take into
account when planning your estate is the inheritance tax.
Just when you think you’ve got
the whole federal estate tax figured out, you may be surprised to learn about
estate taxes at the state level. And
when it comes to taxes, where you live means everything.
For those planning their
estates, estate planning laws can be troublesome enough without the additional
complexity of state estate and/or inheritance taxes. ElderLawAnswers recently considered this issue in an article titled
“Have You Planned for State Estate and
Inheritance Taxes?”
If your state also has a level
of estate or inheritance taxation, then the applicability of such taxes is yet
another obstacle to overcome. Accordingly, you should plan for them just as you
would for the federal estate tax.
Note: the exemption amounts and
tax rates may vary from the federal level (and in some states, they may even
vary from person to person).
Don’t have a state estate or inheritance
tax to worry about? Even if your state does not have its own estate or
inheritance taxes now, watch out! With many states facing budget shortfalls,
taxing the estates and inheritances may be coming closer to home.
In addition, when it comes to state
estate and inheritance taxes you need to plan for the future. Know the tax laws
of your current state and any state in which you may consider in the future.
Bottom line: Be sure to plan for
these unique state laws, even if the federal laws get all the press.
Please
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The archive on our website contains numerous blog posts on these legal
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Reference: ElderLawAnswers
(July 29, 2013) “Have You Planned for State Estate and
Inheritance Taxes?”