Was working with a family yesterday in my office. Their mother had died recently and the needed assistance in transferring their mother's assets to the children and grandchildren. Their mother owned a business, some vehicles, some accounts, and some other assets. Her son came into the office very worried that 30% or more of her mother's estate would be paid to the government in the form of federal estate tax or Louisiana Inheritance tax.
After I spend a little time educating him about our current death tax structure, he breathed a sigh of relief when he learned that there would be no tax due and that he, his sister, his children, and his nieces and nephews would be inheriting his mother's entire estate, without a nickel of death tax being due.
There is no federal estate tax due because her estate was less than $2,000,000, which is the applicable estate tax exemption for deaths occurring in 2008. There is no Louisiana Inheritance Tax due because the State of Louisiana phased out this tax over a five year period that expired on June 30, 2004. So, no tax due!
If you have questions related to tax consequences of Louisiana successions, feel free to send me an e-mail at paul@rabalaislaw.com. In the subject line, put the words, "Successions and Taxes." I'll do my best to answer your questions for you.
Paul Rabalais
