Inheritance Tax Resilience

Executive summary

State inheritance and estate taxes can erode generational transfers. Coordinate before relocation or material wealth events.

• 6 states currently have inheritance tax (KY, MD, NE, NJ, PA, IA partial)
• Federal estate exemption schedule shifts
• Step-up basis is the dominant tax-savings rule

Key takeaways

• 6 states currently have inheritance tax (KY, MD, NE, NJ, PA, IA partial)
• Federal estate exemption schedule shifts
• Step-up basis is the dominant tax-savings rule
• Roth assets pass tax-free

Key strategies

1. Strategy 1

   6 states currently have inheritance tax (KY, MD, NE, NJ, PA, IA partial)

2. Strategy 2

   Federal estate exemption schedule shifts

3. Strategy 3

   Step-up basis is the dominant tax-savings rule

4. Strategy 4

   Roth assets pass tax-free

Pro-tips checklist

• Hold appreciated assets to step up at death
• Use Roth for legacy when possible

FAQ