Louisiana Estate Taxes

Louisiana's estate tax is a "pick-up" tax equal to the state death tax credit under federal estate tax law. Since this credit has been repealed for the period from 2005 through 2010, there are currently no estate taxes imposed by the state. Prior to July 1, 2004, it also had a layered inheritance tax system, but it has since been repealed.

Deductions. The following items are deductible from a decedent's estate when calculating Louisiana estate tax liability:

• decedent's debts and claims against the estate
• funeral expenses
• commissions of executors and administrators
• attorneys' fees and expenses of litigation in defending the will
• in determining the value of real estate, mortgages on such property are deductible (if real property is mortgage in excess of 50 percent of its value, the equity is subject to a further deduction equal to 20 percent of the mortgage)

Returns. An estate tax return must be filed within nine months after the decedent's death. Provided there is good cause, an extension may be granted of up to 15 months from the date of death. An inventory of the estate must also be filed with the court having jurisdiction of the estate and served on the tax collector of the proper county within nine months of the decedent's death (when there is no administration had) or on qualification of the executor or administrator (when there is administration of a will). In addition, an inheritance tax return must be filed by or on behalf of the heirs or legatees when inheritance taxes are due or when the gross value of the estate is at least $15,000.

Any taxes owed are generally due as soon as they are determined by the court with jurisdiction over the estate. In the event that there is no application for an administration of the succession, any taxes owed are due within six months of the decedent's death.

Generation-skipping transfer tax. Louisiana does not impose this type of tax.