Wisconsin Estate Taxes

For deaths occurring after September 30, 2002, and before January 1, 2008, Wisconsin imposes an estate tax equal to the federal estate tax credit for state death taxes in effect on December 31, 2000. Under federal law in effect on that date, estates valued up to $675,000 are exempt from estate tax. Since the federal exemption in 2004 and 2005 is $1.5 million and will be even higher in later years, some estates that are exempt from paying federal estate tax may still be subject to Wisconsin's estate tax.

For deaths occurring after 2007, the Wisconsin estate tax will equal the federal credit in effect at that time. Under changes to federal law eliminating this credit for deaths in 2005 and later years, this means there will be no Wisconsin estate tax beginning in 2008 (unless, of course, there is another change in federal or state estate tax laws).

Deductions. Although not specifically provided for by statute, the federal estate tax deductions are essentially built into Wisconsin's estate tax laws.

Returns. A Wisconsin estate tax return (Form W706) is due nine months after the date of death or when the federal estate tax return is due (with extensions), whichever is later. Any tax payments, however, must be paid to the Wisconsin Department of Revenue within nine months of death.

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