Estate Tax Is Alive and Well, and States Are Dying for the Revenue
Even though the fiscal-cliff compromise kept the federal estate tax exemption at its former level of $5 million, many state governments are imposing estate or inheritance taxes on more modest amounts.
With many states suffering from budget shortfalls, estate tax revenue is more important than ever in keeping government programs running. And that means that some states are hitting the heirs of the recently deceased in the pocketbook.
Often, there are steps that you can take during your lifetime that can reduce or eliminate the bite that state estate and inheritance taxes will take out of the assets you leave behind. An attorney who specializes in estate planning in your state can help you structured your affairs so as little as possible will go to taxes.
Let's take look at the laws in a handful of states.