State Estate Taxes That May Follow You South

The state of Georgia does not have an estate tax, however, 14 states and the District of Columbia (DC) have an estate tax and all but 2 have lower exemption amounts than the 2015 federal exemption amount of $5.43 million. Although you may have made Georgia your primary residents, if another state can prove you still have ties to that state they may require your decedents to file a nonresident estate tax return.  Here is a list of 2015 Estate Tax Thresholds by state:

Connecticut         $2,000,000

Delaware             $5,430,000

DC                       $1,000,000

Hawaii                 $5,430,000

Illinois                  $4,000,000

Maine                  $2,000,000

Maryland             $1,500,000

Massachusetts   $1,000,000

Minnesota           $1,400,000

New Jersey        $   675,000

New York            $2,062,500 (deaths from 4/1/14-3/31/15)

New York            $3,125,000(deaths from 4/1/15-3/31/16)

Oregon                $1,000,000

Rhode Island       $1,500,000

Vermont               $2,750,000

Washington         $2,054,000

The filing requirement for some states include the estates world wide assets in the exemption calculation not just the assets located in that state.  Therefore, owning property in one of the above states that is valued at less than the threshold does not ensure that property will not be taxed if the entire estate is above that threshold. Make sure your estate plan addresses the possibility of non-resident estate taxes in states you have previously lived or owned property.

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