Estate Planning Pitfall – You haven’t taken state estate taxes into account

Description

Abstract: A generous gift and estate tax exemption means only a small percentage of families are subject to federal estate taxes. But it’s important to consider state estate taxes as well. Although many states tie their exemption amounts to the federal exemption, several states have exemptions that are significantly lower. This brief article explains how, in the eyes of the IRS, to successfully cut ties with one state and establish residency in another state with lower state estate taxes.