Inheritance tax
Which state is better to be a resident?
Illinois
Arizona
Minnesota
Currently tesident of Illinois but own property in Arizona and Minnesota.
Approx value os estate 12mil
Terry Says
Well, there are two issues –current income taxation and estate taxation after you pass away.
Some states also have an “inheritance tax” that taxes the recipient of gifts.
And the issue is not only the rate of the estate tax, but the LEVEL at which the tax starts.
The Federal government currently exempts $`11.4 million in assets from estate tax, although there is talk that number may be lowered.
In Illinois, the estate tax exemption will remain at $4,000,000 in 2021 with no adjustments for inflation. Like many states, their highest maximum estate tax is 16%. So even if you don’t pay Federal estate taxes, you would owe them in Illinois if your total estate –including home, assets, retirement accounts, and even life insurance you own — amount to more than $4 million.
I’ll let you do your own research on the other states, starting here. Many states do not have any estate tas at all!
