Estate and Inheritance taxes
Starting in 2017 or later, it is proposed that much of the estate tax will be eliminated, but what of the step-up in tax basis? Being discussed is when there is predeath appreciation in the assets of large estates, it will be taxed, subject to a $10-million-per-couple exemption. This could be done by limiting the step-up in basis for heirs who inherit capital assets from those estates.
Most states do not impose their own estate tax. N.J. is phasing out its law until it disappears at the end of 2017. Tenn. abolished its estate tax for deaths after 2015.
N.J. also has an inheritance tax.
D.C. and 14 states levy their own estate taxes: Conn., Del., Hawaii, Ill., Maine, Md., Mass., Minn., N.J., N.Y., Ore., R.I., Vt. and Wash.