Recent Hilbrich Blog Entries

Indiana's "Death Tax" Dies

The Indiana legislature recently voted to repeal the state’s Inheritance Tax, also known as the “Death Tax.” The inheritance tax had originally been slated to gradually terminate by the year 2022; however, lawmakers decided to forgo the long phase-out process and instead ended inheritance taxes in Indiana in one brisk stroke. In addition, lawmakers made the death tax repeal retroactive to the first of the year. Consequently, no inheritances after December 31, 2012 are subject to a state death tax. That said, it is still important to consider the proper value of any inherited assets as of the date of death in order to allow beneficiaries subject to federal capital gains taxes and other federal tax liabilities to do tax planning. Moreover, large estates worth over five million dollars still need to be concerned about federal estate taxes. However, for most Hoosiers, the repeal of the death tax is good news. Under the old inheritance tax, individuals were taxed at different rates depending upon their relationship to the decedent. Now with there being no state inheritance taxes individuals are free to plan their final wishes more according to what they want rather than what will save their estate the most state inheritance taxes. Family friends, neighbors, cousins, nieces and nephews, children, grandparents, and even individuals providing special care or support to a decedent can now inherit on equal terms. It is still very important to plan for the inevitable through estate planning. Probate can be a very expensive, stressful, and time consuming process that can easily be avoided by creating a trust or through other estate documents and planning. Documents such as a living will and power of attorney can prove invaluable later in life should you become seriously ill or incapacitated. As such, estate planning documents do more than avoid taxes. They help ensure that your wishes are provided for by the people you trust most, not just in death, but in life as well should you no longer be capable of doing so yourself. To get your estate plan in order, please call 877-877-LAW2 (5292) or 219-924-2427 to speak with one of our top estate planning attorneys.

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