Keep a Sharp Eye on Taxes at the State Level in Ann Arbor

…State estate and inheritance taxes have been in constant flux over the last decade. And it’s not just the list of states that has been changing, but in some states, the level at which the tax kicks in has been changing (both up and down). So it’s important to stay on top of this to avoid a surprise tax bill.

Now that 2013 is underway, there are finally some solid numbers from which to base your tax planning – at least from a federal tax standpoint, right? But what about those state taxes? If you reside in one of more than 20 jurisdictions that assess an independent inheritance or estate tax, it’s time to start paying attention to your state’s tax changes.

Forbes recently provided some helpful information in an article bluntly titled “Where Not To Die in 2013.”

There always are myriad state level taxes to consider. However, here’s the rub: several states may overlap one tax-wise, not to mention federal level taxes. For example, 22 jurisdictions (including the District of Columbia) exact some form of taxation. Problem: none of the taxes for these jurisdictions were written with the current federal taxation limits in mind, because those have only been on the books since the beginning of the year.

So what states are the worst for 2013? It’s worth clicking over to the original article and map on Forbes. 

If you’re interested in talking with an Estate Planning attorney, visit www.elderlawannarbor.com.

Reference: Forbes (January 28, 2013) “Where Not To Die in 2013”