This window shows the information that is used to calculate an inheritance or other tax that is not based on the federal estate tax credit for state death taxes. If you are working with a state that you created, you can change the information displayed and customize the calculation of the state death tax. If you are viewing a state that you did not create, then you won't be able to change any of the inputs.
Each set of Inheritance Tax information that you enter is associated with a Recipient Class and a date. The date indicates when that inheritance tax goes into effect. The Recipient Class indicates what type of recipients are affected by the tax.
Is Life Insurance Taxable? Are life insurance proceeds subject to the inheritance tax?
Tax Marital Trust at First Death? Is the marital deduction trust subject to inheritance tax at the first death or is any tax deferred until the death of the surviving spouse?
Exemption per Beneficiary - If there is an exemption amount for each beneficiary, enter the amount here.
Exemption per Estate - If there is an exemption amount for the estate, enter the amount here.
Spouse Interest in Nonmarital Trust Exempt? Is the surviving spouse's interests in the "nonmarital," "unified credit," or "bypass" trust exempt from tax at the first death? (If the answer is yes, then a percentage of the trust that is exempt from tax can be entered for each estate.)
Are Retirement Benefits Taxable? Are qualified retirement benefits subject to the inheritance tax?
Apply Taxes for Estates Over - Some states have what is called a "cliff tax." This means that a tax is only calculated if the estate is over a certain amount, but the exemption is less than that amount.
Inheritance Tax Brackets - In the bracket table, enter the different marginal tax rates and the dollar amount below which the rate does not apply (the "bracket floor"). If the inheritance tax is imposed at a flat rate, then enter "0" for the bracket floor and the flat rate as the "marginal tax rate."