What about State Estate Taxes...Does Utah Impose a State Estate/Inheritance Tax?

"The list of states that impose their own estate or inheritance tax is constantly in flux—and recently has grown."

Forbes.com (Feb 15, 2011) “More States Want To Tax Your Estate”

Just when you thought the estate tax had lost its bite, it turns out more states want to tax your estate.  Although Utah does not currently impose an estate or inheritance tax--i recommend that you watch the news for possible changes in the next few years as the state looks for new revenue sources.

According to Forbes, the budget troubles and rising deficits hitting nearly every state are making them more aggressive about finding revenue wherever they can – including taxing your estate. Illinois recently became the latest state to impose an estate tax, making it retroactive to the beginning of the year.  All told, 12 states and the District of Columbia now impose a state estate tax of some sort. Eight states enforce an inheritance tax and two states (New Jersey and Maryland) impose both an estate and an inheritance tax.

“It’s a very confusing situation,” says Anita Sarafa, a managing director and wealth advisor with J.P. Morgan Private Bank in Chicago. “You kind of have to prepare for the worst and hope for the best.”

For quick information on your state, Forbes has an interactive map and more information here, and for some number-crunching The Wall Street Journal does some math to figure out the worst places to die in 2011 (little secret there: it is still the double-hit states of New Jersey and Maryland.)

You can learn more about Utah estate planning and estate taxes in general on the Estate Tax Practice Center on our website, where you also will find a handy calculator for determining federal estate taxes.

Comments

[Garfield]

It would be very nice if this weren't the case. I don't want my family to have to pay taxes on the things I already have paid for and have paid taxes on. I just did my utah estate planning a few months ago (never can be too cautious). http://WWW.FSLAW.COM

[jay chisholm]

Thanks for your advice.
Please read my blog and leave a comment.

[Scott Griffin]

That would make no sense to have others pay taxes on items that I already paid taxes on. Luckily for me I finished my provo estate planning http://provoestateplanning.com/. Gives me piece of mind and comfort knowing that I got that out of the way.