Quote:
Originally Posted by Janie123
This would keep these accounts out of probate court and avoid state estate/inheritance taxes.In PA my brother and I paid 4.5% when my mom passed. All states are different. This is PA rules:
4.5% for transfers to direct descendants (lineal heirs), 12% for transfers to siblings, and 15% for transfers to other heirs
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What is described here is state inheritance tax, which is different that state estate taxes.
An inheritance tax is imposed upon the receivers of inheritance after distribution.
An estate tax is imposed upon the value of the descendent's assets prior to distribution.
States that currently impose an inheritance tax include:
Iowa
Kentucky.
Maryland.
Nebraska.
New Jersey.
Pennsylvania.
MA has an estate tax above $2M, raised from $1M last year. That's why many people have retired to FL, to avoid taxes . .
FL has no estate taxes of which I am aware