You should be aware of the laws the state of the decedent.
You have been named as an heir in your the estate plan of a relative.
But they lived in another state.
According to a recent NJ.com article titled “Inheriting money from out-of-state relative,” you may owe taxes.
An estate is subject to the estate tax in the state where the decedent was a resident.
Some states, like New Jersey, have their own estate taxes and even inheritance taxes.
If the estate is subject to estate tax, then the tax will be taken from the estate before being transferred to the beneficiary.
An inheritance tax will be paid by the heir.
You may or may not owe an inheritance tax.
This will depend on where your relative resided when they died.
Sometimes this is determined by how you are related to the decedent.
Knowing the estate laws of your own state is hard enough.
Knowing the estate laws of the state where your relative lived adds another curve ball.
An estate planning attorney admitted to practice in your relative’s state of residence would be helpful.
So, how do you find such an an "experienced" estate planning attorney in that state?
First, ask around. Friends, family and other professional advisors are trustworthy sources.
Second, conduct an "organic" search on "Google" for "estate planning" near you (e.g., "Estate Planning Anytown MoKan").
Third, either way, verify! Check out the education, experience, ratings and client reviews of any attorney before you contact him or her.
In fact, I use both of these services to thoroughly vett attorneys before referring members of our "client" family for legal help in other areas of law or for matters in jurisdictions outside Kansas or Missouri.
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 in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: NJ.com (June 6, 2017) “Inheriting money from out-of-state relative”