What States have Inheritance and/or Estate Taxes?

executorMost people are aware of the Federal Estate tax. Most people are unaware that many States also have their own STATE Estate tax, and a handful of States have a STATE inheritance tax.

What is an inheritance tax if it is not an Estate tax … in other words, what’s the difference? The main difference is that an estate tax is calculated on the amount of what is inherited, while an inheritance tax is based on who gets the inheritance.

Most people simply do not plan because they don’t want to take the time to do so. However, those lack of plans means that you have put that burden on the backs of your executors and/or trustees. These people also have lives too and shouldn’t have to deal with all the issues you could have resolved ahead of time.

You’ve heard the horror stories from others. Only you can prevent your heirs telling others of the horror stories you’ve left them!

More on State Estate taxes.

What does being an executor and/or trustee involve?

Note: Both the Federal and State tax laws change quite often. The above is meant to provide you insight into issues you may be placing your heirs into without the proper planning of a qualified estate planning attorney.

 

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