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For estates of decedents who died after December 31, 2004, the Internal Revenue Code no longer provides for a credit for state death taxes. Those estates are not required to pay Georgia estate tax, and are not required to file copies of their federal estate tax returns with Georgia. House Bill 488 was introduced in 2005 and Section 26 provides "This chapter shall not apply to any estate with a date of death which occurred in a year for which the Internal Revenue Code does not allow a credit for state death taxes." The Bill essentially eliminates the necessity of filing an estate tax return during any year when the IRS does not allow a death tax credit. It was signed by the Governor on April 12, 2005.
For estates of decedents who died before January 1, 2005, the Georgia estate tax is the amount allowable by the Internal Revenue Service as a credit for state death taxes. In effect, the estate taxes paid to Georgia may be used to reduce the estate taxes due the Internal Revenue Service.
Georgia does not have a separate estate tax return. A copy of the United States Estate Tax Return (Form 706) should be filed with Georgia if Form 706 is filed with the Internal Revenue Service and: 1) the deceased was a resident of Georgia; or 2) the deceased was a nonresident and owned property located in Georgia. The copy of Form 706 should be filed with Georgia on or before the date the original return must be filed with the Internal Revenue Service. Contact the Internal Revenue Service for Form 706.
Georgia does not have an inheritance tax or a gift tax.
Source: Tax Guide for Georgia Citizens, Georgia Department of Revenue, at page 13.
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