What Is the Missouri Estate Tax Exemption?
The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) repealed a tax credit for state estate tax until 2011 at the earliest. As a result, there has been no state estate tax in Missouri since 2005. Any reinstatement of the federal credit would trigger the return of the state estate tax.
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History
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Prior to 2001, the federal government imposed a tax on estates transferred from a deceased person to a living citizen or resident of the United States. This was known as the estate tax, or the "death tax."
State governments were allowed to tax a portion of the estate not covered by the federal tax.
Passage of EGTRRA
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In 2001, the EGTRRA was passed in an effort to stimulate the economy after the Sept. 11, 2001, terrorist attacks. One of its effects was to eliminate the state estate tax.
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Reinstatement of Estate Tax
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As of August 2010, the EGTRRA was expected to expire in 2011. Unless it is renewed or another such law is put in place, state estate taxes would once again be in effect for any estate transferred on or after Jan. 1, 2011.
The Missouri estate tax rate would revert to its pre-EGTRRA level, which is the maximum allowed by the IRS. This rate varies, depending on the size of the estate.
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