Inheritance Tax Repealed in Indiana — Other States May Follow

Indiana Governor Mitch Daniels officially signed to repeal the inheritance tax for deaths after Dec. 31, 2021. The relief is retroactive to January 1 and increases amounts exempt from the levy for 2012 deaths.

Currently there are still 22 states plus the district of Columbia that impose estate and/or inheritance taxes for 2012. As more states start repealing these taxes, others might follow because they are competitive for people and the capital that comes with them. The Ohio governor signed a law last year to get rid of Ohio’s estate tax starting on January 1, 2013. North Carolina is raising its exemption amount to keep up as well. In Oregon, a ballot initiative has been introduced to repeal Oregon’s estate tax. Tennessee may be moving in the same direction as well. Nebraska governor proposed a repeal of the inheritance tax, but billionaire Warren Buffet opposed the initiative.

See Ashlea Ebeling, Another State Death Tax Kicks the Bucket, Will More Fail?, Forbes, Mar. 20, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.