It’s official. The Indiana inheritance tax is repealed for deaths after Dec. 31, 2021.
The Indiana inheritance tax is officially on its way out the door. What does this mean for other states?
For some taxpayers, wealth transfer planning has required two layers of tax consideration. First, the federal estate tax, which traditionally has received the lion’s share of attention and, second, “state” estate taxes or even “state” inheritance taxes. And, in some instances, those state taxes can be harsher than the federal estate tax (especially given the current federal estate tax exemption of $5.12 million per taxpayer)!
Accordingly, the demise of another state wealth transfer tax is welcome news to many in Indiana. Might this signal a trend extending beyond the Hoosier state? This question is explored in a recent Forbes article titled Another State Death Tax Kicks The Bucket, Will More Fall?. As the author points out, this development in Indiana could buttress the argument for the repeal of such wealth transfer taxes in sister states and maybe even at the federal level. The states, after all, are always in constant competition with one another (for residents and businesses) and taxes are a constant give and take in the exchange.
For more information on the Indiana laws and the politics involved, I recommend reading the original article.
Reference: Forbes (March 20, 2012) “Another State Death Tax Kicks The Bucket, Will More Fall?”
Courtesy of The Law Office of Vincent J. Profaci, P.A., serving Altamonte Springs, DeLand, Kissimmee, Lake Mary (including Heathrow), Longwood (including Lake Brantley and Sweetwater), Maitland, Orlando, Sanford, and all of Central Florida in the areas of Wills and Living Trusts, Estate Planning, Asset Protection, Elder Law, Medicaid Planning, Probate, Real Estate, and Business Law and Litigation.