Friday, July 24, 2015

Tennessee Estate Tax

Tennessee is a great state to live in for multiple reasons, one of which is a favorable estate tax.  In 2015, estates below five-million dollars will not be subject to a state-level estate tax. Without a change in legislation, Tennessee will not have an estate tax beginning in 2016.  If you moved to Tennessee and have a will or trust created in another state now is the time to have your documents reviewed by a licensed Tennessee attorney.  Many times it is logical to have your documents reflect your new domicile because it is where you live and it is likely that most, if not all, of your assets are now in Tennessee.  Moreover, if you have accounts located outside of Tennessee sometimes it is best to relocate your accounts to Tennessee to take full advantage of our tax laws.  Taking care of this process now is usually much cheaper than doing so after the fact.  In some circumstances, Tennessee statute allows for a trust modification even after the trust settlor dies.  In general, this requires drafting a petition to modify the trust, providing notice the beneficiaries, and a hearing in front of a judge.  If your current estate documents are older than five years, contact our office to ensure your desires are still accomplished in an efficient manner. 

This is not intended to be legal advice and does not form an attorney-client relationship with any reader.

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