Where NOT to Die
According to the Tax Foundation, currently 14 states and the District of Columbia have an estate tax, 6 states have an inheritance tax, and two states (Maryland and New Jersey) have both. These taxes are on top of the federal estate tax of 40%; estates up to $5.45 million in 2016 are exempt. For a business owner, these taxes can erode what heirs inherit and, in some cases, can cause families to sell business interests at fire-sale prices just to pay the taxes. Best action: business owners should work with their tax advisors to determine whether estate taxes are a concern and, if yes, what to do about them.