Bad States to Die In

While the federal estate tax exemption has been doubled through legislation, state estate taxes are still a concern for some people. The different rates between states makes some states more expensive to die in than others.

The federal estate tax gets a lot more attention than estate taxes levied by the states. This is because most states have done away with estate taxes.

Nevertheless, there are a few states that still levy the taxes.

Some of those states tie their exemption level to the federal government’s, such as Hawaii and Maine. Consequently, people in those states are getting an automatic tax break.

Some other states have already passed legislation to do the same thing and other states have recently repealed their estate taxes.

But there are still a couple of states that can be expensive places to pass away, as Forbes discusses in “Where Not To Die in 2018.”

Oregon and Massachusetts are tied for the lowest estate tax exemptions in the country at $1 million. Oregon’s system is complex and depends on what type of property the estate holds and who the heirs are. Massachusetts has a much stricter system.

As more and more states do away with their estate taxes, pressure is mounting on those remaining states that still have their own estate taxes. The pressure is either to scrap the taxes or at least to raise the exemptions.

If you live in an estate tax state, be sure that you have discussed the state tax with your estate planning attorney.

Reference: Forbes (Dec. 21, 2017) “Where Not To Die in 2018.”