As a response to likely budget concerns, the State of Delaware has reinstated the Delaware Estate Tax for decedents dying on or after July 1, 2009. The new Delaware Estate Tax is tied to the federal state death tax credit and apparently will apply to estate of $3.5 million or more. Non-residents will be taxed on the pro-rata portion of their estates that are subject to tax in Delaware. 

As states are having a harder time meeting budgetary constraints, the list of states that now have a state death tax in some form or fashion continues to grow. The list of states now includes: Connecticut, Delaware, District of Columbia, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Nebraska, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Vermont and Washington. Multiple bills have been introduced but not yet passed this year in both Virginia and New Hampshire.

If you own real estate or tangible personal property in another state, that property may be subject to state death taxes even if you are a Florida resident. However, it is often possible to avoid the state death tax using special planning techniques.

Cox & Nici has been successfully protecting our clients’ out-of Florida assets from the negatives of probate and state death tax for years.

Are your non-Florida assets protected?

   

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