Indiana State Budget Signed
On May 8, Indiana Governor Mike Pence signed the biennial state budget into law. Two noteworthy items in this bill include (1) a full (immediate) repeal of the Indiana inheritance tax retroactive to January 1, 2013 and (2) an upcoming reduction in individual income taxes. Indiana’s current individual income tax rate is 3.4% which will be reduced to 3.3% in 2015 and then further to 3.23% in 2017. Although the governor had been proposing a 10% reduction in income taxes, ultimately a 5% reduction was included in the bill.
For estate planning purposes, the immediate repeal of the inheritance tax creates a different landscape for many high net worth families. This change combined with the highest federal estate tax exemption in history will eliminate the need for more and more families to pursue estate tax planning. The focus for these families now shifts to true estate planning- ensuring family goals are accomplished over multiple generations.
Payne Wealth Partners planning team is dedicated to helping families navigate these types of legislative changes in relation to their personal goals.
Author: Terry Prather, CFP®, ChFC® (bio)
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