How is estate transfer tax calculated?
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 Since then, Congress has passed Public Law 113-295 which repealed 26 USC § 2011 making the changes enacted in 2001 permanent.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. (Question & answer last reviewed May 15, 2024)