Louisiana inheritance tax is levied on donees and heirs of a deceased person for acquiring the rights to receive and own property from the dead owner. The exemptions received by the inheritors are deducted from the property value inherited and then the amount arrived thus is taxable. This amount is then multiplied with the Louisiana inheritance tax rate as stipulated by law. The tax rates are dependent on the closeness of the relation between the deceased person and the inheritor of the property.
Inheritance tax payers of Louisiana can be divided into three broad categories:
Direct descendants: By blood, affinity, adoption or the living spouse of a dead person
Collaterals: sisters and brothers by affinity
Strangers
The concept of a forced heir is also of paramount importance in this context. This guarantees an heir who is worthy enough to inherit an estate or a share of the estate of the dead man. A portion of the property left behind by the dead man is reserved for the worthy heir irrespective of the mention of his name in the will.
The donor can in no way deprive this person of his property. According to the 1995 constitutional amendment, the forced heir has to be a first degree descendant of the dead man and he should be below twenty three years of age. However, there is no age limit if the forced heir is of unsound mind or physically disabled.
Inheritance tax of Louisiana is imposed on its residents who have intangible movable property anywhere outside Louisiana or movable tangible property and all forms of immovable property within the state. For the nonresidents, all tangible movable properties and immovable properties located in the state of Louisiana are liable to be taxed. The proceeds of pension plans, life insurance policies, annuity contracts, retirement plans, etc. do not come under the purview of inheritance taxation in Louisiana.
When the gross value of the estate of the dead person is more than $15,000, inheritance tax in Louisiana is required to be paid. Louisiana inheritance tax returns are required to be filed within nine months of the death of the person.