Frequently Asked Questions
Estate Transfer Taxes
Does Louisiana impose any death taxes?
Yes, Louisiana imposes an estate transfer tax (R.S. 47:2431–2437).
The estate transfer tax is only imposed on estates that are subject to federal estate taxation under the Federal Internal Revenue Code. The amount of the state estate tax is equal to the federal estate tax credit allowed for state death taxes. The intent of the estate transfer tax is to obtain a benefit for the state in the form of an estate tax credit allowed under Internal Revenue Code (see R.S. 47:2434). The estate transfer tax, therefore, is not intended to impose any additional tax burden on the decedent's estate, but to shift payment from the federal government to the state.
Who is required to file an estate transfer tax return?
Revised Statute 47:2436 requires that an estate transfer tax return be filed by or on behalf of the heirs or legatees in every case when an estate transfer tax is due or when the value of the deceased's net estate is $60,000.00 or more.
Does Louisiana impose an inheritance tax?
No, Act 822 of the 2008 Regular Legislative Session repealed the inheritance tax law, R.S. 47:2401–2426. Effective January 1, 2012, no receipts will be issued for inheritance tax regardless of the date of death.
How is estate transfer tax calculated?
The estate transfer tax is calculated by determining a ratio of assets included in the federal gross estate attributable to Louisiana to the total federal gross estate. This ratio is applied to the state death tax credit allowable under Internal Revenue Code Section 2011. The portion of the state death tax credit allowable to Louisiana that exceeds the inheritance tax due is the state estate transfer tax.
The Economic Growth and Tax Relief Reconciliation Act of 2001 phased out the state estate tax credit between 2002 and 2005 and replaced the credit with a deduction for state estate taxes for deaths that occur after December 31, 2004. Since then, Congress has passed Public Law 113-295 which repealed 26 USC § 2011 making the changes enacted in 2001 permanent. Because R.S. 47:2432 only imposes the estate transfer tax if a state death tax credit is allow against the federal estate tax, no state estate transfer tax is due for deaths after December 31, 2004.
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