An Estate Planning Attorney in Orange County, CA Reveals the Worst States to Die In
Some states have estate taxes or inheritance taxes that are added to any federal estate taxes that need to be paid. If you are in retirement the state you choose for residency does matter when it comes to estate taxes.
PRLog - Jan. 14, 2014 - ORANGE COUNTY, Calif. -- ORANGE COUNTY, CA – January 13, 2014 – Dwight Edward Tompkins, an estate planning attorney in Orange County, CA, makes a good point in his latest blog post. He discusses the estate tax and inheritance tax that varies throughout the United States. He says, “Thirty-one states in the Union do not levy any form of estate or inheritance taxes. So, if you die in one of those 31 states, your estate does not owe the state or the federal government taxes – as long as the value of your estate falls below the personal federal estate tax exemption.” He then explains, “As much as $5.34 million of a person’s estate will be exempt from estate federal tax. A flat 40% tax rate will be applied to any excess over $5.34 million.”
It is important to think about the heirs of a person’s estate when settling down for retirement. If you reside in a state with an inheritance tax like Nebraska, Kentucky, Tennessee and Pennsylvania, then your heirs will be affected by it. Tompkins states, “If you reside in a state that does not impose estate or inheritance tax and your personal estate is below $5.34 million, then your heirs will receive their inheritance without having to pay a single cent to the state or federal government.”
Dwight Tompkins, a successful estate-planning attorney located in Orange County, CA (http://www.tompkins-law.com/home-page), advises his readers, “If you are a long-time resident of the Golden State, you may as well consider retiring there. If you want to retire elsewhere, you may consider Texas or Florida. (Almost all of the Western, Midwestern and Southern states do not impose any form of death taxes.)” He then says, “I advise you to consider your state of residence or “domicile state” in your estate planning. The difference is not just geographic; it could mean hundreds of thousands of dollars in death taxes that your heirs will have to shoulder.”
There are many benefits to not having a state estate tax or a state inheritance tax. To learn more about this topic please visit the link below.
Tompkins Law has been assisting residents in the Orange County, California and the surrounding areas with estate planning, probate, living trust, and business planning services for over 20 years. Visit http://www.youtube.com/watch?v=HfA2qikZ7Lkfor more information.