Beware the State Estate Tax Trap
The Metropolitan Corporate Counsel
June 2014
In their article entitled, "Beware the State Estate Tax Trap," published in the June 2014 issue of The Metropolitan Corporate Counsel, partners Carolyn Caufield and Christina Mason discuss substantial changes in the federal estate tax that were made permanent at the end of 2012, including the impact of those changes on state estate-tax regimes. The authors present a brief analysis of how state estate taxes work and provide examples of issues that may arise as a result of the 2012 changes, including a cautionary note about how “the disparities between the federal and state estate tax rules and the possibility of being taxed in two or more states with markedly different systems of taxation create complexity and traps for the unwary...” Carolyn and Christina offer practical strategies for minimizing state estate taxes, and readers are encouraged to seek qualified counsel to ensure adequate planning.