The new year will ring in some changes to state estate taxes in four states:
- Illinois - state estate tax exemption will increase from $2 million to $3.5 million
- North Carolina - state estate tax exemption will increase from $5 million to $5.12 million
- Oregon - state estate tax will only apply to the amount that exceeds $1 million
- Rhode Island - state estate tax exemption will increase from $859,350 to $892,865
As of now, two states will see changes to their state estate tax exemptions and one state will see its estate tax repealed effective January 1, 2013:
- Illinois - state estate tax exemption will increase from $3.5 million to $4 million
- Maine - state estate tax exemption will increase from $1 million to $2 million and the estate tax rate will be reduced
- Ohio - state estate tax will be repealed
But don't count on other states to remain stagnant on state estate taxes and inheritance taxes. As I reported yesterday, changes may be coming to Tennessee's estate tax during the 2012 legislative session, and efforts are in full swing in Indiana, Nebraska and Oregon to completely repeal each state's estate tax or inheritance tax.
- Where Not to Die in 2012
- State Estate Tax and Exemption Chart
- State Inheritance Tax Chart
- What's the Difference Between an Estate Tax and Inheritance Tax?
- Understanding the State Estate Tax Exemption Trap
- How to Reduce or Even Eliminate Your Estate Tax Bill
- Would You Move to Avoid State Estate Taxes?