Many factors, such as the cost of living and quality of healthcare, go into choosing a place to retire. Seniors who hope to pass as much of their estate as possible on to their heirs also consider how tax-friendly a state is.
Georgia is a popular place for seniors to retire because of its lack of inheritance and estate taxes.
What is an inheritance tax?
Some states impose a tax on any money or property that a person inherits. The amount of tax usually varies based on the person’s relationship to the deceased person and the value of the inheritance.
What is an estate tax?
Estate taxes are specific amounts deducted from the total value of an estate before heirs can receive anything. Part of estate planning involves finding ways to distribute assets while minimizing any applicable estate or inheritance taxes.
What makes Georgia tax-friendly for seniors?
Because Georgia has neither an inheritance nor an estate tax, seniors who live in the state do not have to take steps to minimize state taxes as part of their estate planning. Additionally, residents of the state enjoy modest sales taxes and tax exemptions on prescription medications.
Taxpayers over the age of 65 can exclude up to $65,000 of retirement income from their state income tax and homeowners over the age of 62 who earn $10,000 or less can exempt up to $10,000 of their home’s assessed value from school taxes.
Georgia’s low cost of living combined with its senior-friendly taxes make the state an attractive choice for budget conscience seniors. However, estate planning is still important for ensuring you pass on as much of your estate as possible.
