When it comes to taxes, where you live means everything. In fact, simply stepping over into the next state can change everything.
For those planning their estates in Overland Park and elsewhere, estate planning laws can be troublesome enough without the additional complexity of state estate and/or inheritance taxes. ElderLawAnswers recently considered this issue in an article titled “Have You Planned for State Estate and Inheritance Taxes?”
If your state also has a level of estate or inheritance taxation, then the applicability of such taxes are yet another obstacle to overcome. Accordingly, you should plan for them just as you would for the federal estate tax.
Note: the exemption amounts and tax rates may vary from the federal level (and in some states, they may even vary from person to person).
Don’t have a state estate or inheritance tax to worry about? Even if your state does not have its own estate or inheritance taxes now, watch out! With many states facing budget shortfalls taxing the estates and inheritances may be coming close to home.
In addition, when it comes to state estate and inheritance taxes you need to plan for the future. Know the tax laws of your current state and any state in which you may consider in the future.
Bottom line: Be sure to plan for these unique state laws, even if the federal laws get all the press.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.For more information about estate planning and to download free tools to help you organize your estate, visit my estate planning website.
Reference: ElderLawAnswers (July 29, 2013) “Have You Planned for State Estate and Inheritance Taxes?”