Federal and State Estate Tax
Adjustment (present in the 1976 carryover tax basis rule).
This assumes that, at the time of A's death, the laws in effect for 2000 apply, and that A dies in a "pick-up state," which imposes state estate tax
in an amount equal to the state death tax credit.
In a situation involving a taxpayer whose mental competency is waning and therefore may be on the precipice of being unable to form the intent to change domicile for state estate tax
or inheritance tax purposes, the issue of changing domicile becomes a complete quagmire.
5 million from paying the state estate tax
on their "natural resource" wealth.
State Estate Tax
(A Quick Reference Guide) STATE ESTATE TAX
Currently, there are 32 states that impose no state estate tax
In New York, the estate's representative or a family member must file a Form ET-141, New York State Estate Tax
Domicile Affidavit, which asks for the decedent's address at the date of death and whether the decedent ever lived in New York or owned any real property in the state.
Thus, these gifts will trim her estate's eventual exposure to state estate tax
Also, while individuals and couples with estates valued at less than $5 and $10 million, respectively, need not be concerned about federal estate tax, Shakter says they may need life insurance to cover state estate tax
, which some 20 states decoupled from the federal tax in 2001.
Roughly one-third of the states and the District of Columbia impose a state estate tax
, and in many of these jurisdictions, the available exemption from the state estate tax
is significantly less than the available Federal estate tax exemption.
The heirs of small-business owners, farmers and timberland owners should be able to inherit properties from their families without having to sell off portions to pay a state estate tax
In determining the viability and efficacy of portability planning, the following list of factors should be considered: cost, benefit, magnitude of the couple's estate, size of anticipated unused exemptions, ages, asset protection, marital status, growth of assets, desire for generational planning, and state estate tax