Think you don’t have to worry about estate taxes because of the new generous federal estate tax law? Not so, for families in 21 states and the District of Columbia where separate state levies are still a big concern. “For the vast majority of people who are wealthy, the fear factor of the federal estate tax is gone, but many still need to focus on state estate and inheritance taxes,”
With 2012 fully behind us and the laws for 2013 fully on the books (both federal and state), there finally are some solid numbers from which to base your tax planning. Such is the case with the federal estate and gift tax exemption pegged at $5.25 million per taxpayer (and an almost “automatic” $10.5 million per married couple). However, if you reside in one of more than 20 jurisdictions that assess an independent inheritance or estate tax, then beware.
Forbes recently provided some helpful information in an article bluntly titled “Where Not To Die in 2013.”
There always are myriad state level taxes to consider. However, here’s the rub: several states may overlap one tax-wise, not to mention federal level taxes. For example, 22 jurisdictions (including the District of Columbia) exact some form of taxation. Problem: none of the taxes for these jurisdictions were written with the current federal taxation limits in mind, because those have only been on the books since the beginning of the year.
So what states are the worst for 2013? It’s worth clicking over to the original article and map on Forbes.
Reference: Forbes (January 28, 2013) “Where Not To Die in 2013”