Delaware Estate Taxes

Delaware's estate tax is equal to the state death tax credit under federal estate tax law. Since this credit has been eliminated from 2005 through 2010, there are no estate taxes imposed by the state.

Deductions. The following items are deducted from the estate for purposes of determining Delaware estate tax liability:

• claims against the estate
• attorney's fees
• the federal unified credit
• funeral expenses
• unpaid mortgages on, or indebtedness in respect of, property where the value of the decedent's interest therein, undiminished by such mortgage or indebtedness, is included as part of the decedent's gross estate
• administrative expenses
• state death taxes imposed on a charitable transfer
• losses incurred during the settlement of the estate not compensated by insurance or otherwise
• transfers for public, charitable, and religious uses

Returns. Delaware no longer requires an estate tax return (Form 900-R for resident decedents; Form 900-NR for nonresident decedents) or an affidavit that no estate tax return is required for tax years in which federal estate tax law does not allow a credit for state tax paid by the decedent's estate (currently 2005 through 2010). In addition, there will be no special lien against a decedent's estate for payment of the tax in such tax years.

Generation-skipping transfer tax. Delaware does not impose a generation-skipping transfer tax.