Tips From the Pros: Importance of State Taxes in Estate Planning

Several states have either passed or introduced bills to tax wealthy taxpayers.¹ These taxing strategies involve increasing income tax rates, wealth taxes, estate/inheritance taxes and/or insurance premium taxes. Only 12 states² and Washington, D.C. have estate taxes, and only six states³ have inheritance taxes, with many states trying to mirror the federal estate tax exemption of $12.92 million per individual. Consequently, state estate and inheritance taxes