Effective January 1, 2007, Kansas revamped its estate tax laws to impose a progressive estate tax rate which actually decreased in 2008 and again in 2009 and then the tax is scheduled to entirely disappear in 2010. The estates of Kansas residents as well as nonresidents who own real estate and/or tangible personal property located in Kansas are subject to the tax. (Note: Oil and gas leases on lands located in Kansas and all interest created thereby, or arising therefrom, are considered to be Kansas tangible personal property for estate tax purposes.) For deaths occurring between January 1, 2007 and December 31, 2009, the following general rules apply:
- For 2007, 2008 and 2009, the amount exempt from the Kansas estate tax is $1,000,000.
- If the value of the gross estate exceeds $1,000,000, then a Kansas Estate Tax Return, Form K-706, must be filed within 9 months of the decedent's date of death and the tax due must be paid at the same time. If the value of the gross estate is less than $1,000,000, Form K-706 does not need to be filed.
- The April 1997 version of the federal estate tax return, IRS Form 706, must also be prepared and filed with the Kansas Department of Revenue. This is in addition to IRS Form 706 for the year of death if one is required to be filed.
- The tax rates range from 3%-10% in 2007, 1%-7% in 2008, and 0.5%-3% in 2009. Refer to Kansas Estate Tax Instructions, page 9, to view the specific tax tables.
This information is complements of the Kansas Department of Revenue.
The bottom line - if you're a Kansas resident and your estate is passing to someone other than your spouse and the value is $1,000,000 or more, or if you're a nonresident who owns real estate and/or tangible personal property, including oil and gas leases, located in Kansas and your estate is valued at $1,000,000 or more and it's not passing to your spouse, then your estate may owe a Kansas estate tax. Up next, Kentucky inheritance taxes.
- Understanding Death, Estate and Inheritance Taxes
- State Estate Tax Chart
- Understanding the State Estate Tax Exemption Trap
- When is a Federal Estate Tax Return Required to Be Filed?
- How to Calculate Your Federal Estate Tax Liability
- How to Reduce or Even Eliminate Your Estate Tax Bill
- Estate Planning & Probate in Kansas from Foulston Siefkin LLP