Every new year brings new taxes. Fortunately, for people in Tennessee, estate tax is likely one they won’t have to worry about. Estate taxes change frequently, and it can be difficult to understand what federal and state there might be for your estate. At Tressler & Associates, our estate planning attorneys can help you understand everything you need to know about estate taxes.
Short History of Estate Tax
In 2015, for residents in Tennessee, an estate could be worth up to $5,430,000 and not be taxed. However, the good news is that since 2016, Tennessee has had no estate tax. This creates a desirable environment for those entertaining the idea of Tennessee as a location in which to retire. The lack of estate tax immediately makes Tennessee a more attractive state to live in compared to other states. In 2022, the federal maximum for a tax-free estate has increased to $12,060,000.
Although these numbers seem unattainably high to most Tennesseans, these amounts are the finale to a long road of decreasing estate taxes. In 1999, for example, an estate over $650,000 was taxed in Tennessee. The state subsequently put a plan in place to slowly phase out this tax, with 2015 being the final year. The federal government continues to give no indication that it intends to demolish this tax. However, the maximum may increase due to inflation. We can only hope that our state and federal government continue these trends.
Contact Us for Help with Your Estate
If you are asking wondering why you need help with estate planning if your estate is nowhere near the federal maximum, we can help! To learn more about how we can assist you in estate planning or if you have any questions about this or any other legal matters, call us at 615-444-2345 or contact us here.