State Death Tax PlanningState Death Tax Planning

Richard S. Franklin & Molly B. F. Walls

Once upon a time, estate planners focused almost exclusively on the federal tax implications of their planning for clients. State¹ death taxes, which were simple by comparison, didn't merit similar concern. In the past decade, however, tax law changed so that estate attorneys could no longer give short shrift to the state death tax implications of their planning. The recently enacted Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 TRA), with its lower federal estate tax rate, increased federal estate and gift tax applicable exclusion amount and portability feature, creates further complexities with regard to state death tax planning — but it also provides planne...