SimplyTrust Knowledge Base

A: Alaska does not levy a state inheritance tax (a tax on heirs) or a state estate tax (a tax on an estate before distribution). The Alaska Court System states it plainly: “As of 2005, Alaska no longer collects a state estate tax.”

A: Yes, federal estate taxes may apply based on the valuation of the estate. It is essential to consult with an estate planning professional to ensure compliance and optimal tax strategies.

A: South Carolina does not currently impose an inheritance tax. However, federal estate taxes may still apply to estates above a certain value.

A: The state phased out its inheritance tax post-2005 to align with changes in the federal tax code and promote a more growth-oriented financial environment.

A: Yes! Estate planning involves much more than just estate tax considerations. It includes creating a will or trust, designating beneficiaries, and making arrangements for the management of your assets in the event of incapacity. These are important regardless of whether your estate will be subject to federal estate tax.

A: No, Alaska does not have its own state estate tax. Alaskans are only subject to the federal estate tax.

A: The federal estate tax exemption is a substantial amount. That means only very large estates are subject to the tax. The amount changes regularly, so consult the IRS website for the most current figures.