Want some good news about taxes? Doesn’t everyone?
Here it is:
The Indiana Inheritance Tax was recently repealed retroactive to January 1st of this year.
This tax didn’t have much of an impact when parents or people of moderately-sized estates left money to their own children or immediate family members (as a result of lower tax rates and higher exemptions). But exemptions and tax rates were significantly less favorable for individuals less closely related than descendent “Class A Transferees.” For large estates passing to unrelated persons, the rate could go quite high-up to 20%.
The repeal means that there will be no more determining taxes due from heirs according to variables such as their relationship to the deceased.
This is especially good news for people who may want to leave an inheritance for someone other than their immediate family, which includes people in domestic partnerships or civil unions. These families will longer need to be affected by death taxes in Indiana and will likely glean the greatest practical benefit from the repeal.
It’s safe to say that few people are sorry to see this tax go.
Despite the demise of the Indiana Inheritance Tax, however, numerous compelling reasons still remain for individuals and families to address their estate planning needs.
Let us know if you have any questions about how this repeal might affect you or your family. We can help.
And who said that there is never any good news about taxes?