A Guide To Tennessee Inheritance And Estate Taxes printable pdf download

A Guide To Tennessee Inheritance And Estate Taxes

A GUIDE TO TENNESSEE INHERITANCE AND ESTATE TAXES

Tennessee has two death taxes.

INHERITANCE TAX

The Tennessee Inheritance Tax is imposed by Part 3 of Chapter 8, Title 67, Tennessee Code

Annotated (See the new codification for Inheritance Tax in Volume 12). An inheritance tax is a tax upon

the privilege of receiving property by transfer because of a decedent’s death. The statute is construed

strictly against the state and in favor of the taxpayer. The tax is administered by the Department of

Revenue, through the Commissioner.

FILING AND PAYMENT INFORMATION

If the gross estate of a resident decedent is less than the maximum single

exemption allowed by T.C.A. Section 67-8-316, the representative of the estate is not

required to file an Inheritance Tax Return. If the gross estate of a resident decedent

is greater than the exemption an inheritance tax return must be filed by the

personal representative of the estate. CAUTION – When an estate is opened in

Probate, Notice to Commissioner is filed by the clerk – a closing receipt will not be

issued by the Department unless either a long form or short form is filed.

The return must be filed with the Tennessee Department of Revenue, Andrew Jackson State Office

Building, 500 Deaderick Street, Nashville, Tennessee 37242-0600. You may call (615) 253-0600 if you

have any questions.

The return is due nine (9) months after the date of the decedent’s death, unless an extension of

time is granted by the Department of Revenue pursuant to T.C.A. Section 67-8-409.

The tax is due nine (9) months after the date of decedent’s death and must be paid within such

period unless an extension of time thereof has been granted or permission for payment of tax in

installments has been granted. Check or money order in payment of the tax should be made payable to

“Tennessee Department of Revenue”.

ESTATE TAX

The Tennessee Estate Tax is imposed by Part 2 of Chapter 8, Title 67, Tennessee Code Annotated.

The purpose of the Tennessee Estate Tax is to supplement the inheritance tax to insure the State secures a

total tax at least equal to the “State Death Tax Credit” allowed by the federal government on the Federal

Estate Tax Return, Form 706. Thus, the Tennessee Estate Tax is equal to the amount by which the credit

against the federal estate tax exceeds the inheritance tax.

EXEMPTIONS – STATE AND FEDERAL

A Guide To Tennessee Inheritance And Estate Taxes