When it comes to estate planning, there are various key issues that people must consider when creating or making changes to an existing estate plan. Taxes play a critical role in the way in which assets are distributed and it is important for people to recognize that there are many factors that influence the tax consequences of an estate. Not only is every estate plan unique, but the state in which one resides also affects the potential tax liability of their estate.
While some states have strict guidelines in place with respect to the taxation of estates, it is imperative for residents of Duluth and other parts of Georgia to understand where their state stands.
Estates and taxes in the state of Georgia
According to the Georgia Department of Revenue’s website, the state of Georgia does not levy estate taxes. Since 2014, the state not only eliminated estate taxes but also ruled that residents do not need to file estate tax returns. Moreover, Georgia does not have any inheritance tax, either. While Georgia residents are not required to file estate tax returns in their home state, many have other estate-related tax obligations.
Federal estate taxes
Some states require residents to file estate tax returns at the state level, but many people are required to file an estate tax return with the federal government. If an estate is valued over a certain amount, federal estate taxes are necessary. If you are unsure whether your estate is subject to taxation at the federal level, you need to carefully review the guidelines that are in place.