Does moving to another state eliminate estate tax?

Question

At the moment, the deceased person, the beneficiaries, and the property are connected to more than one state. At the moment, the federal estate may be below the federal threshold, but we are learning that state estate or inheritance taxes can use different rules. Right now, there is roughly $28,000 involved in my situation, which is large enough that I do not want to guess about basis, income, deductions, or filing requirements.

Soradin · Accepted Answer

Residency must be genuine, and real estate or other property may remain taxable where it is located. Tax treatment may shift with timing, basis, ownership, beneficiary status, and whether the amount is treated as principal or income. When preparing the return, the rules can depend on the deceased person's residence, the location of property, the beneficiary's relationship, and state specific exemptions. When preparing the return, federal and state systems are separate, so the executor or beneficiary should check the current rules that apply in CT and any other state connected to the estate.

Does moving to another state eliminate estate tax?

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