As Americans continue to pick up and move across state lines, let’s consider ESTATE TAX and INHERITANCE TAX. Two taxes often forgotten as generally these taxes only affect the 1%. In 2023, on the Federal level, only estates over $12.92 million ($25.84 million per couple) are taxable. State taxes however, are completely different so please take your time to learn and understand the tax implications in the state that you are choosing to move to.
An estate tax is levied on the assets of the person who passes away. An inheritance tax is levied on heirs.
12 States have an Estate Tax
6 States have an Inheritance Tax
Maryland has both!
Reach out to your financial advisor and your tax advisor to consult on the real cost of moving states before you begin packing.