NC Estate Tax Repeal Retroactive
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Earlier in 2013, Forbes ranked North Carolina as one of the top states in the nation “Where Not to Die”, reflecting the burden of the state estate tax. However, North Carolina recently dropped off the list when lawmakers approved the repeal of North Carolina’s estate tax. The Tar Heel State is not such a bad place to die now.
When the bill was ratified on Tuesday, July 23, 2013, the terms of the repeal make it retroactive to January 1, 2013. There will not be a state estate tax for the estates of individuals who died on or after January 1, 2013. However, there may be federal and state estate taxes to satisfy for all those who died on or before December 31, 2012.
The repeal is a savings for many families in North Carolina; however, the state as a whole faces a different experience. Since the repeal of the estate tax is retroactive, state analysts estimate the state is missing out on approximately $52M in additional revenue this year alone. Within five years this number jumps to $300M cumulatively.
Was a family member who passed away not a resident of North Carolina? NC estate tax may still need to be satisfied if: They died prior to January 1, 2013 and they owned more than $5.12M of North Carolina property. If so, you need to consult with a tax attorney since a tax may still be imposed. Before the NC estate tax was repealed it reflected the federal rules ($5.25M exemption). These taxes need to be paid within 9 months after the date of death on both the state and federal levels. Meet with a tax attorney to learn about outstanding obligations.
