SimplyTrust Knowledge Base

A: Used thoughtfully, the right of survivorship is a practical tool that streamlines transfers, reduces court involvement, and keeps loved ones focused on what matters—not paperwork. It’s a powerful way to avoid probate. With joint tenancy (often called JTWROS), a decedent’s share transfers instantly to the survivor and skips probate—even if a will says otherwise. Bank and brokerage accounts titled JTWROS work the same way. Real estate can be titled to include survivorship. Through joint tenancy, tenancy by the entirety, or (in certain states) community property with right of survivorship. So the deed flows directly to the survivor at passing.

A: Revocable trusts in Vermont versus Nevada turns on tax context and drafting habits, not on whether trusts “work.” Both states let you keep control while living, avoid most probate, and maintain privacy. Vermont’s UTC-based framework and estate tax create one planning backdrop. Nevada’s NRS system and no state-level transfer taxes create another.Revocability mechanics: Vermont presumes revocable unless the document says otherwise. Meanwhile, Nevada presumes the opposite unless revocation rights are reserved. Both approaches work the same in practice if you include clear revocation language in the trust.Probate avoidance and privacy: in both states, properly funded revocable trusts can keep most assets out of probate and out of the public record. Funding requires retitling accounts and deeds. Taxes during life: revocable trusts are “see-through” for income taxes; the creator reports income on a personal return. There’s no built-in income-tax break. State tax landscape at passing: Vermont has no estate tax or inheritance tax, while Nevada has neither an estate nor inheritance tax. That difference doesn’t turn a revocable trust into a tax shelter. However, it shapes how families model future costs.

A: Vermont has long favored an estate tax structure rather than a separate inheritance tax. Before the early 2000s, Vermont tied its system to the federal one as many states did. When that federal credit phased out, Vermont maintained its own stand-alone estate tax. (Something that only a few states have done.)A 2016 law simplified the structure by applying a flat 16% rate above the exclusion, replacing prior brackets. Then, in 2019 (H.541), lawmakers phased in a higher exclusion—$4.25 million in 2020 and $5 million starting in 2021—where it stands today. So, the state has never been big on inheritance tax.

A: Vermont levies an estate tax only when an estate exceeds $5 million. Anything above that threshold is taxed at a flat 16%. Amounts under $5 million aren’t taxed at the state level. When a Vermont estate meets the filing threshold, the return is generally due nine months after the person’s passing. The state follows the common approach of allowing an extension to file (typically up to six months). However, an extension doesn’t extend the time to pay. These timelines track the federal estate tax calendar.While Vermont is one of a handful of places with a state-level estate tax, it does not impose an inheritance tax. That means beneficiaries don’t pay a separate tax on what they receive.

A: One big difference is that Rhode Island has a state income tax. Trusts with Rhode Island income or resident status may need to file RI-1041 and pay tax on Rhode Island–source income. Nonresident trusts file if they have Rhode Island–source income. Nevada does not impose a state income tax. Nevada-situs trusts therefore avoid a state-level income tax, though other states can still tax based on connections to them. Another contrast between the two states is how they handle duration. Rhode Island abolished the common-law rule against perpetuities. This allows very long-term or even perpetual trusts—but only for trusts drafted specifically that way. Nevada adopted a statutory approach. All future interests can remain unvested for up to 365 years under NRS 111.1031. That long window supports “dynasty” planning across many generations.

A: Rhode Island once used a patchwork of “estate and transfer” levies. Over time, lawmakers repealed many transfer-style provisions and modernized the code under Chapter 44-22. Which left a stand-alone estate tax framework in place. You can see this evolution in the statute index, where multiple former sections are marked “repealed.” A big shove came from federal changes. In 2001, Congress phased out the federal credit for state “pick-up” taxes. Many states, including Rhode Island, “decoupled” by adopting their own estate tax tied to the federal rules as they existed on January 1, 2001. Rhode Island’s law at §44-22-1.1 reflects that linkage and defines how the state estate tax works today. In short: the state chose an estate tax, not an inheritance tax.

A: Before the early 2000s, most states used a “pick-up” system. States took a share of the federal estate tax via a credit, so paying state tax didn’t increase the overall bill. Congress phased out that federal credit in the 2001 EGTRRA law, which pushed states to create stand-alone systems. Rhode Island is one of the states that did so, and today it imposes its own separate Rhode Island estate tax with its own threshold and rules (although no inheritance tax). For decedents who pass in 2025, the Division of Taxation set the credit at $85,375, which exempts the first $1,802,431 of value. That’s up from $1,774,583 for 2024. In plain terms: if an estate’s net taxable amount is at or below $1,802,431, the Rhode Island estate tax doesn’t apply. Over the threshold, Rhode Island uses a bracketed schedule with rates that top out at 16%.

A: These probate shortcuts work in both states when assets are properly funded into the trust. In Pennsylvania, a funded revocable trust avoids the court process for those assets. Many small estates also have a simplified probate route. Nevada likewise allows funded trusts to bypass probate for titled property.Taxes are where things differ. Pennsylvania has an inheritance tax (although not an estate tax). Transfers are taxed by relationship (0% spouse; 4.5% lineal heirs; 12% siblings; 15% others). Meanwhile, Nevada imposes no state estate tax and no state inheritance tax for passings after January 1, 2005.

A: Pennsylvania has taxed inheritances since the 1800s, and it kept that system even as many states focused on estate taxes. For a time, the Commonwealth also used a “pick-up” estate tax tied to a federal credit. When Congress phased out that credit in 2005, Pennsylvania effectively let the state-level estate tax fade. The inheritance tax remained in place and still does today.Pennsylvania taxes inheritances at graduated rates. Transfers to a surviving spouse are 0%. Parents inheriting from a child age 21 or younger are also 0%. Lineal heirs—children, grandchildren, parents, and other direct descendants—pay 4.5%. Siblings pay 12%. Most other heirs pay 15%, with specific exemptions for charities and government. Property owned jointly by spouses is generally exempt.

A: No. For decades, many states—including Pennsylvania—tied their estate taxes to a federal credit known informally as the “pick-up” credit. Under this setup, states could collect up to the amount the federal system credited for state taxes, so the total bill to families didn’t increase; it just shifted who received it. In 2002, Pennsylvania briefly “decoupled,” freezing its rules to pre-2001 federal law to preserve revenue. A year later, the state “recoupled,” again matching the federal credit and allowing the estate tax to phase out as that credit disappeared in 2005.

A: Revocable trusts in South Carolina versus Nevada work similarly for probate avoidance. The differences come from property rules, tax settings, and Nevada’s long-horizon options once planning shifts to irrevocable structures. Nevada is a community property state while South Carolina is an equitable distribution state. Neither state employs an estate tax or inheritance tax, although South Carolina has an income tax. Also, Nevada is famous for being “trust-friendly” and allows long durations for trusts (up to 365 years).

A: For years, South Carolina—like many states—used a “pick-up tax” or “sponge” tax. Instead of a standalone levy, the state collected an amount equal to the federal credit allowed for state death taxes. It didn’t increase the overall bill; it simply redirected part of the federal tax to the state. When Congress passed the 2001 tax law (EGTRRA), it phased out that federal credit and ended it entirely in 2005, undercutting state pick-up systems.South Carolina chose not to “decouple” from the federal change. With the federal credit gone after January 1, 2005, the estate tax effectively disappeared for decedents on or after that date. The Department of Revenue states this plainly. There is no South Carolina estate tax for decedents dying on or after January 1, 2005. There is also no inheritance tax (a tax on beneficiaries rather than the estate).

A: In community property states, most assets and debts gained during a marriage are “ours.” Separate property still exists. (Think pre-marriage savings, personal gifts, and inheritances.) But only if you keep them truly separate. In equitable distribution states, judges don’t split everything 50/50 by default. Instead, they aim for a fair result based on factors like contributions, needs, and time together. “Fair” doesn’t always equal “equal.”During a LifetimeIn community property, either spouse can help manage community assets. Titling matters less than when you acquired the asset. In equitable distribution, title can carry more weight day-to-day. That brokerage account in one name? It may still be marital, but titling influences paperwork and access.After a PassingOwnership rules steer what’s in your probate estate and what your revocable trust can distribute. In community property states, the “community half” typically belongs to each spouse. In equitable distribution states, your plan focuses on what’s titled to you and what your beneficiary designations control. Hence, same tools, different math.

A: Both states recognize revocable (living) trusts that you can change or revoke at any time. Income inside the trust is still yours for tax purposes, which keeps annual tax filing simple. In other words, a revocable trust by itself doesn’t reduce income or transfer taxes. It mainly helps with control, incapacity planning, and avoiding probate. But comparing revocable trusts in Oregon versus Nevada isn’t about the trust document alone—it’s about the ecosystem around it: probate shortcuts, state estate taxes, and marital property rules. Oregon’s trust offers probate efficiency amid a state estate tax. Nevada’s trust pairs probate avoidance with no state estate tax and compelling community-property basis rules with correct asset titling.

A: Oregon once had an inheritance-tax framework. But by 1987 the statutory inheritance tax rate was set to zero and the system effectively operated as a “pick-up” tax tied to a federal credit (the state death tax credit). When Congress later phased out that federal credit in the 2000s, Oregon had to choose whether to drop its death tax entirely or create its own stand-alone system. Lawmakers chose the latter. In 2011 Oregon put in place the modern estate tax (estate transfer tax) that applies independently of the federal credit. The state also updated its administrative rules to make clear that the old inheritance-tax regime applies only to deaths before January 1, 2012. For deaths on or after that date, the relevant levy is an estate tax—not an inheritance tax on beneficiaries. There have been efforts to repeal the tax entirely. Most notably, Ballot Measure 84 (2012)—which would have phased out Oregon’s estate (and any remaining inheritance) taxes—failed at the polls, keeping the system in place. Calls to revisit repeal or raise the threshold surface periodically.

A: An estate tax is charged on the estate’s total taxable value and is paid by the estate before distributions go to heirs. The federal government levies this tax, and some states do too. For 2025, the federal basic exclusion amount is $13.99 million per person—estates under that number generally owe no federal estate tax. An inheritance tax is different. It’s a state tax some heirs may owe based on what they personally receive and their relationship to the person who has passed. Only a handful of states impose it today.

A: First, Oregon explicitly chose to keep a state-level estate tax after federal changes in the 2000s eliminated the old system many states used. (Although there's no inheritance tax.) Before 2005, Oregon’s system largely piggybacked on a federal credit (the “pick-up tax”). When Congress phased out that credit, states had a choice: drop their tax or rewrite it. Oregon “decoupled” from those federal changes and kept its own revenue stream. The state opted to maintain an independent estate tax tied to 2010 federal estate-tax law as a reference point for calculating the Oregon taxable estate—a structure still referenced in legislative summaries today.Second, voters have repeatedly declined to repeal it—Ballot Measure 84 in 2012, for example, failed—so the tax remains part of the state’s revenue mix.