A growing number of State governments have been raising their estate tax exemption amounts in order to dissuade wealthy residence from decamping and moving to another state. Federal estate taxes are not a problem for most people because of the very high exemption amount of $5.45 million for individuals and double that for married couples. There are currently 14 States plus the District of Columbia that have their own estate taxes. The exemption threshold varies from state to state so where a person resides matters for how much estate taxes liability their estate will have. State estate taxes can be unpopular with many residence, but they can also be a good source of revenue for State and local governments. Political leaders will need to weigh these issues as they decide on their estate tax policies.
See Sandra Block, More States Giving Heirs a Break on Estate Taxes, Kiplinger, January 4, 2016.
