Why geography matters for your estate plan and your heirs

Location, location, location is the most famous and widely repeated mantra in the real estate industry, but it could also apply to estate planning.

Since states set their own rules, it's important to consider geography while mapping out your finances, estate planning attorneys say. State laws already vary widely when it comes to estate and inheritance taxes but can grow even more complex if you start adding trusts to your plan, they said.

"Two families with identical assets can face very different bills depending only on which state line they're on," said Kate Teal, assistant general counsel at online digital estate planning platform Trust & Will. "Probate cost and speed vary enormously by state, and that shapes behavior."

On the most basic level, people should be aware if their state has estate and inheritance taxes. If so, know what they are because they can drastically shrink the amount you intend to leave heirs.

The estate tax is levied on the things the deceased owns or has certain interests in when they die and is paid by the estate. The inheritance tax is paid by heirs.

Most people don't pass the $15 million-per-person federal estate tax threshold to have to pay…

Original source: https://www.usatoday.com/money/