Tennessee Phases Out Estate (Inheritance) Tax

Tennessee has moved to gradually eliminate its estate tax (which it calls an inheritance tax) by 2016. (Tenn. HB 3760, SB 3762.) For deaths in 2012, estates worth up to $1 million are exempt from the tax. The exempt amount will increase as follows:

• deaths in 2013: $1.2 million
• deaths in 2014: $2 million
• deaths in 2015: $5 million

As of January 1, 2016, the tax is abolished.