Tuesday, February 22, 2011

Nevada: a pretty good place to die (if there is such a thing)

The following snippet was taken from Bill Bischoff's article as published in the Wall Street Journal's Market Watch web page on February 16, 2011.

"16 States and DC Have Estate Taxes

"The sixteen states and the District of Columbia, which impose their own estate taxes (as opposed to inheritance taxes, which I will explain later) base their taxes on the entire value of an estate in excess of the applicable exemption.

"The exemptions vary from a low of $338,333 to a high of $5 million. Specifically:

* Three states have exemptions of less than $1 million (Ohio at $338,333; New Jersey at $675,000; and Rhode Island at $850,000).

* Six states have $1 million exemptions (Maine, Maryland, Massachusetts, Minnesota, New York, and Oregon), and so does D.C.

* Three states have $2 million exemptions (Illinois, Vermont, and Washington).

* Two states have $3.5 million exemptions (Connecticut and Delaware).

* Two states have $5 million exemptions (Hawaii and North Carolina).

"The lowest tax rates are 7% (Ohio) and 12% (Connecticut). The highest is 19% (Washington). The other 13 states and D.C. all charge 16%.

"6 States Have Inheritance Taxes

"The inheritance tax exemptions are zero or negligible--except in Tennessee which has a $1 million exemption.

"The tax rates are 9.5% in Tennessee, 15% in Iowa and Pennsylvania, 16% in Kentucky, 18% in Nebraska, and 20% in Indiana.

"Worst Case: 2 States Have Both

"Maryland and New Jersey raise confiscation to a higher level by charging both an estate tax and an inheritance tax. In Maryland, the inheritance tax exemption is a whopping $150 and the tax rate is 10% (in addition to the 16% estate tax rate). In New Jersey, the inheritance tax exemption is zero and the tax rate is 16% (in addition to the 16% estate tax rate).

"The Other 28 States Have No Estate or Inheritance Taxes

"The 28 states NOT listed above[, including Nevada,] have no estate or inheritance taxes. They are better places to die."

See the full article here: http://bit.ly/fC4571.

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