From the article: How to Minimize Estate Taxes
Do people really move to a new state to avoid estate taxes? I say yes because in my 15 years of experience as an estate planning attorney, I'm going to estimate that at least half of my clients have changed their primary residence from a state that collects an income tax and/or an estate tax - such as Illinois, Maryland, New Jersey, New York, Ohio or Pennsylvania - to a state like Florida that doesn't collect an income tax or an estate tax. Would you move to avoid estate taxes? Share Your Opinion
Leaving New York
- Absolutely. Already in the planning phase to join my very numerous # of friends that have already done so.We also dump NYs onerous income tax and ludicrous tax on IRA distributions.
- —Guest Stanley Bernstein
I'm researching that very question
- My parents are in their late 70's and have asked me to compare the estate taxes for 4 states so that they can move to the best one for their taxes.
- —Guest Chip
Ohio's tax law drives residents away.
- The estate tax is the legal way for Ohio to steal a person's assets. The estate of the deceased will pay whatever income taxes and capital gains taxes are due, but apparently that's not enough -- the state has legalized taking more versus letting family members inherit the assets. At $338,333 Ohio has the lowest tax exemption of any state and it certainly causes me to seriously consider moving to another state. At a minimum, Ohio should raise the exemption amount to match the Federal exemption value; otherwise, even middle-class residents who own nice homes and some investments will be encouraged to leave Ohio just to save on taxes.
- —Guest Terry in Ohio
All taxes can be avoided
- People with large estates can either pay their lawyers and accountants to get them out of paying taxes or afford to find the best place to live to avoid taxes.
- —Guest Robert in NY
Florida or bust - no estate tax here
- In 2006 I moved from Maryland to Florida and I've never looked back. Not only does Florida have great weather compared with Maryland (barring hurricanes of course), but with no income tax I've been able to save a lot more. And while my estate would be taxable in Maryland, it won't be here.
- —Guest Maggie S
