From
The KDDK Advantage - April/May 2007
Federal Estate Taxes: Five States Pay More Than Half
The
IRS recently released statistics from federal estate
tax returns filed in 2005. The data reflects estate taxes
for citizens who died in calendar year 2004. The number
of filed returns continues to decrease as the exemption
increases; however, IRS statistics indicate the amount
of federal estate taxes paid in 2005 remains steady at
about $21.5 billion.
The statistics also show
a breakdown of who paid the tax by state of residence.
California, as most would expect, came in first with the most estate tax returns
filed (7,901) and highest net estate tax paid (more than $3.9 billion). Florida
ran a distant second with 3,691 estate tax returns filed and almost $2.6 billion
in net estate tax paid. New York was third with 3,051 returns filed, accounting
for an estate tax liability of $2.3 billion. Factoring in Michigan ($1.2 billion)
and Texas ($1.1 billion), the top five states were responsible for more than
50 percent of the federal estate tax liability for 2004.
It is interesting to
note that the $21.5 billion in 2005 estate taxes was
paid by less than one-percent (.0077 percent) of the
total recorded deaths in 2004,
which was 2,397,615 according to the Center for Disease Control and Prevention
in Atlanta. Some 72 percent of the estates paying the liability were those
with gross estate values of $5 million or more.
Partner John
Hegeman’s practice includes estate and disability planning, adoption
and tax & employee benefits law. John also provides
services in probate and trust administration, guardianships
and elder law. If you have questions or need
assistance in any of these areas, contact John at 812-423-3183 or jhegeman@kddk.com.
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