Tennessee Governor Bill Haslam has now signed into law HB3760, which will increase the Tennessee Inheritance Tax Exemption beginning in 2013 and eventually phase out the tax completely in 2016.
Currently, the Tennessee Inheritance Tax Exemption amount is $1 million for 2012. HB3760 increases the exemption amount to $1.25 million in 2013, $2 million in 2014, and $5 million in 2015. After 2015 the Tennessee Inheritance Tax will be repealed.
Also signed into law was SB2777, which completely eliminates the Tennessee Gift Tax, retroactive to January 1, 2012. Tennessee was one of only two states that imposed a gift tax. Tennesseans were subject to the Gift Tax if more than $13,000 in cash or assets were given to a family member; the exemption was $5,000 for non-family members.
If you would like to discuss the impact of this information, please contact the expert listed below at PYA, (800) 270-9629.
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