State-based Estate OR Inheritance Tax Regime Discussion
1. Carefully read this linked article from the Tax Foundation: https://taxfoundation.org/state-estate-tax-state-inheritance-tax-2020/ Notice the graphic after the fourth paragraph there. 13 (including DC) estate + 6 inheritance = 19 total, relevant tax regimes.
2. Choose and research one state-based estate OR inheritance tax regime, in its current 2020 form, out of the 19 identified above. Rely on and cite only relevant and official government sources for this research.
3. In 200 to 300 words, address the following for your chosen state-based estate or inheritance tax regime:
Relate the mechanics of your chosen tax regime, describing relevant forms, tax rates, etc.
Describe any linkage to the federal tax code.
Apply your chosen tax regime to the following “John Doe” example, demonstrating how much would be owed in state taxes, by whom, to whom, and by when.
Decedent John Doe.
Domiciled entire life in chosen jurisdiction.
Died at 80 years old there on December 31, 2020.
Single.
One surviving adult child, who is sole beneficiary/heir/claimant.
All debts, expenses, and fees have been satisfied by estate. No other claims pending.
Net taxable assets of $10,000,000 cash and equivalents, all located in the jurisdiction of domicile and death.
Assume no gifts were made by John during his lifetime.
If there are additional assumptions needed in order to reasonably compute liability, feel free to state those as well.
Include in your Original Post title your chosen state’s name and tax. Example: Nevada – Estate Tax
Cite each and every source used, with the following basic elements: Author, date of publication, title, page, paragraph, sections, or exhibit(s) used, weblink/publisher/database.
Example: Florida Department of Revenue, August 2018, Property Tax Benefits for Active Duty Military and Veterans PDF, p, 1, https://floridarevenue.com/property/Documents/pt109.pdf
A citation should, by its content and style, allow a reader to readily verify the information, independent of the author.
