Saturday, April 22, 2017
Although the future of the federal estate tax is looking grim, some twenty states still impose their own estate or inheritance tax and some of their exemption rates are well below the current federal rate. More specifically, fourteen states as well as the District of Columbia have their own estate taxes, with the highest rate at 20% in Washington. The exemptions in these states vary from $1 million to a high of $5.49 million. On the other hand, six states have inheritance taxes, which are based on the value of certain inherited assets. There are some states, such as Maryland and New Jersey, that charge both an estate and inheritance tax. A combination of these federal and state taxes can create some fairly sizable tax bills, so you must be careful where you die.
See Bill Bischoff, Here Are the 20 Most Expensive Places in America to Die, Market Watch, April 20, 2017.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.