As a result of the high threshold, only a few people are going to be subjected to any Federal estate taxes. It is true that most clients will not meet $5.43 million ($10.86 million for married couples) threshold for the Federal tax, but clients should be mindful of any State estate taxes that they could be on the hook for. There are currently 15 States that collect estate taxes, six States tax inheritance, and two states have both inheritance and estate taxes. Clients should be mindful of their State’s estate tax policies and the minimum thresholds. A certain number of States have thresholds that are lower than the Federal one. This column recommends some traditional tactics clients can use to reduce their tax burdens. People should consult a financial planner for practical investment advice.
See Donald Jay Korn, How to Manage State Estate Taxes, Financial Planning, August 5, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
