Changes in Estate & Trusts


Reduction of Credit for State Death Taxes

For estates of decedents dying in 2004, the credit allowed for state death taxes will be limited to 25% of the amount that would otherwise be allowed.

For estates of decedents dying after 2004, the state death tax credit will be replaced with a deduction for state death taxes.

 

 

Repeal of Qualified Family-Owned Business Interest Deduction

The qualified family-owned business interest (QFOBI) deduction has been repealed for the estates of decedents dying after December 31, 2003.