As of January 1, 2016, the Tennessee inheritance tax is repealed. What this means is that families of persons who pass away in 2016 or later will not owe any Tennessee inheritance taxes. Looking forward, estate planning in Tennessee, in many cases, will be simplified because there will no longer be a need to develop strategies to avoid the Tennessee inheritance tax.
Do I need to make changes if I already have estate planning documents in place?
Probably not, but you can simplify your current documents to eliminate language that is unnecessary now that the tax has been eliminated.
Is there a federal inheritance tax?
Yes. For 2016, the federal estate tax exemption is $5,450,000 per person, meaning that families are not taxed unless the estate of the deceased family member exceeds that amount. A married couple will therefore have an exemption of $10.9 million between them.
Tennessee Inheritance Tax Question?
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