The Rhode Island Division of Taxation has announced the estate tax threshold for the estates of decedents dying in 2012. The threshold for 2012 will be $892,865, compared with $859,350 for 2011, a 3.9 percent increase. A state law enacted in 2009 raised the threshold to $850,000, from $675,000, effective for decedents dying in 2010. That law also required that the threshold amount be adjusted each January thereafter, based on annual inflation, compounded annually, and rounded to the nearest $5 increment.
In general, for a decedent dying in 2012, a net taxable estate valued at $892,865 or less will not be subject to Rhode Island’s estate tax. (In certain circumstances, the Rhode Island estate tax will not apply no matter the estate’s size: Rhode Island General Laws Chapter 44-22 provides full details on the computation of the tax, including such factors as the marital and charitable deductions.)
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