State Taxation of Estates: Mitigating and Avoiding State Estate and Inheritance Taxes

Recording of a 110-minute CPE webinar with Q&A


Conducted on Wednesday, September 2, 2020

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will detail the caveats and considerations of state estate and inheritance taxes payable in many states. Our panel of estate planning experts will outline specific strategies to lower these taxes, including steps to change a taxpayer's domicile.

Description

Currently, with the federal estate exemption at a record-high of $11.58 million in 2020--and twice this amount if married--taxpayers have little concern about death taxes. Eighteen states, however, have either an estate tax or an inheritance tax, and these states are reluctant to increase their exemptions to the federal amount. The states of most concern are those with extremely low thresholds; Massachusett's and Oregon's limits are a minuscule $1 million. Trust and estate advisers need to be aware of these thresholds and plan appropriately to mitigate or avoid an unexpected tax bill.

New York's estate tax with a cliff threshold is particularly alarming. Estates that exceed the $5.85 million threshold by more than 5 percent are taxed on the value of the entire estate, not just amounts exceeding the limit. At the same time, the state of Washington provides a $2.5 million deduction for a qualified family-owned business interest (QFOBI). A primary consideration of all taxable estates is should the taxpayer move his domicile to a state without a death tax.

Listen as our panel of estate tax experts explains state taxes payable at death, including estate and inheritance taxes, state responses to portability, unique exemptions and planning opportunities in these states, and how to establish residency in a no-tax state.

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Outline

  1. State estate taxes
  2. State inheritance taxes
  3. State responses to portability
  4. Interplay of state and federal estate taxes
  5. Establishing residency in states with no death taxes
  6. Planning opportunities

Benefits

The panel will review these and other key issues:

  • Integrating federal and state estate planning to minimize taxes
  • Addressing state reluctance to adopt federal portability
  • Specific considerations when moving a taxpayer's domicile before death
  • Individual state requirements and exemptions

Faculty

Hunt, Kenneth
Kenneth Hunt

Attorney
Hodgson Russ

Mr. Hunt regularly represents individuals, families, beneficiaries, corporate and individual fiduciaries on all aspects...  |  Read More

Nappi, Ted
Ted Nappi, CPA/PFS, CSEP

Partner, Market Co-Leader, Private Client Services
Withum Smith+Brown

Mr. Nappi has almost 20 years of professional accounting experience and specializes in the area of estate, trust and...  |  Read More

Young, Audrey
Audrey G. Young

Of Counsel
McLane Middleton

Ms. Young focuses her practice in the area of trusts and estates law and taxation. She counsels individuals, families...  |  Read More

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