Estates & Trusts
State Estate Tax Changes Â Â
The Wills, Trusts, and Estates Prof Blog reports that the federal estate tax exemption was indexed for 2012, increasing the $5 million exemption to $5.12 million. Many of the twenty-three states, including Washington, D.C., that impose state estate taxes have also made changes for 2012. A list of state specific changes to estate taxes for 2012 and beyond is below:
- To keep up with inflation, North Carolina and Rhode Island increased their exemptions to $5.12 million and $892,865, respectively.
- Illinois increased its exemption from $2 million in 2011 to $3.5 million beginning January 1, 2012. Illinois will increase the exemption to $4 million beginning January 1, 2013.
- Connecticut retroactively decreased its exemption from $3.5 million to $2 million. The exemption is retroactive to January 1, 2011.
- Vermont increased its $2 million exemption in 2011 to $2.75 million for 2012 and beyond.
- Oregon now applies its tax to any estate amount over $1 million as opposed to applying the tax to the full estate amount.
- Ohioâ€™s republican Governor, John Kasich, abolished Ohioâ€™s estate tax, effective January 2, 2013.
- New Jersey will have the lowest estate exemption once Ohioâ€™s exemption is removed. New Jerseyâ€™s exemption is currently $675,000.
- Maine will increase its exemption from $1 million per person to $2 million beginning on January 1, 2013.
- Indiana, Nebraska, Oregon, and Tennessee are all undergoing efforts to repeal state levies.
- Pennsylvania recently passed an inheritance tax exemption for farmers.
SeeÂ Ashlea Ebeling,Â Where Not to Die in 2012, MSN Money, Jan. 23, 2012.