A Purdue Extension agricultural economist says the repeal of Indiana's inheritance tax should help farm families.
Gerry Harrison says before the repeal that took effect Jan. 1, children or grandchildren were tax-exempt on an inheritance up to $250,000. Anything over that was subject to being taxed. A family friend had only a $100 exemption, and tax rates ranged from 10 to 20 percent. So three siblings who last year inherited farmland valued at $1 million from a friend faced an inheritance tax of about $100,000.
The repeal doesn't affect the federal inheritance tax. But Harrison says the current federal estate credit is equal to the tax on a $5.25 million inheritance, which means only a few beneficiaries in Indiana would be affected.
