Even
if death and taxes are the only things certain in life, state legislators say
they can never be certain about death taxes.
The fiscal cliff-bridging budget
set and made “permanent” the estate tax at a generous $5.25 million exemption
amount. Good news, right? But beware! There are still some states with their own death taxes.
Consider Connecticut, a state
that enjoyed a bumper year for death taxes. As reported by The Hartford Courant in an article titled “Inheritance Windfall: Record-Breaking Year
For Estate Taxes Helps Fuel Budget Surplus,” the tiny Nutmeg State raked in
an unprecedented $428 million in inheritance taxes.
A good portion of this windfall
is due to budget timing and estate planning, since this figure includes any
gift taxes collected in 2012. Remember, that was a year of great gifting before
the American Taxpayer Relief Act (ATRA), and Connecticut counts all
transfer/inheritance taxes as one and the same. Then again, there were some
notable deaths in Greenwich, CT, the richest little town in the U.S.
If you do not reside in one of
the states with its own death tax, watch out. As state budgets continue to
squeeze, death taxes may become more appealing to your state legislators.
For more information and articles on
estate planning and elder law topics, please visit our website
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Reference: The Hartford
Courant (May 11, 2013) “Inheritance Windfall: Record-Breaking Year
For Estate Taxes Helps Fuel Budget Surplus”