Eyes on State Tax

…State estate and inheritance taxes have been in constant flux over the last decade. And it’s not just the list of states that has been changing, but in some states, the level at which the tax kicks in has been changing (both up and down). So it’s important to stay on top of this to avoid a surprise tax bill.

There are some solid numbers from which to base your tax planning – at least from a federal tax standpoint,

right? But what about those state taxes? If you reside in one of more than 20 jurisdictions that assess an

independent inheritance or estate tax, it’s time to start paying attention to your state’s tax changes. Forbes

provided some helpful information in an article bluntly titled “Where Not To Die in 2013.”

There always are myriad state level taxes to consider. However, here’s the rub: several states

may overlap one tax-wise, not to mention federal level taxes. For example, 22 jurisdictions

(including the District of Columbia) exact some form of taxation. Problem: none of the taxes for

these jurisdictions were written with the current federal taxation limits in mind, because those

have only been on the books since the beginning of the year.-

Reference: Forbes (January 28, 2013) “Where Not To Die in 2013”

Jimmy Long