As you are getting your estate in order, it’s incredibly important to understand Rhode Island estate tax law. The taxes you are or are not required to pay will have a huge impact on the overall character of your estate. And unless you prepare in advance, your heirs may not receive as much of your estate as they expected. Learn about the most important features of Rhode Island estate tax law, and keep that information in mind as you make estate planning decisions.
Your Rhode Island Estate Tax Law Obligation
The state of Rhode Island taxes estates larger than $1.5 million. That figure is large, but it is important to remember that it includes all the assets in the estate, including property and the value of business interests. Estates that initially seem quite modest may be subject to this tax once their full value is calculated. If an estate falls below the threshold set by Rhode Island estate tax law, it will not be taxed in anyway, and heirs will inherit the full amount.
Your Rhode Island Estate Tax Law Rate
If your estate is subject to the estate tax, it will be taxed at a rate of 16%. That may sound high, but just consider that the federal estate tax rate is set at 40%. However, an estate will only be taxed at the federal rate if it is calculated to be larger than $5 million. Rhode Island is also unique because it does not have an inheritance tax. So while an estate may be taxed, the heirs of that estate will not also be taxed. For that reason, Rhode Island makes it particularly easy for estates to be passed from one party to another without being diminished by out-sized taxes.
On the surface, Rhode Island estate tax law may seem simple and straightforward. But as part of a larger estate planning effort, it can be quite complex. And considering all that is on the line, it can be quite consequential, too. Get the help you need to navigate Rhode Island estate tax law and estate planning in general by calling The Law Office of Jay Bianco at 401-206-0098.