Thursday, January 30, 2014
Although individuals with less than $5.34 million are exempt from the federal estate tax, they may still have to worry about a state estate or inheritance tax if they live in one of the sixteen states that impose one.
New York Governor Andrew Cuomo recently took a step towards changing his state’s $1 million exemption to match the higher federal exemption, realizing that affluent residents of his cold-weather state are moving to states like Florida with no estate tax, thus depriving New York of other taxes like property, sales, and income tax.
And New York is not alone. Ohio has already repealed its estate tax while Indiana repealed its inheritance tax. Tennessee is in the process of getting rid of its inheritance tax while Maryland and the District of Columbia are reviewing their estate taxes.
See Paul Sullivan, Some States Are Moving to Loosen Their Estate Taxes, The New York Times, Jan. 24, 2014.
Special thanks to Matthew B. Bogin, Esq. for bringing this article to my attention.