Senate Passes Leftwich Lineal Estate Tax Law Bill

State Senator Debbe Leftwich, chair of the Business and Labor Committee wants to update one of Oklahoma’s estate tax law to include collateral heirs.

On Tuesday, the full Senate approved SB 1391 which Leftwich, (D-Oklahoma City) authored. It would modify the current law and allows collateral heirs to have the same exemptions that lineal heirs have.

Under current law, lineal heirs have an exemption of up to $1 million on estate taxes, but there is no exemption for collateral heirs.

Governor Brad Henry mentioned his support for extending the estate tax exemption to collateral heirs in his State of the State speech saying that by doing this it will help keep family farms and small businesses as vital part of Oklahoma’s economy.

Leftwich said the bill has been needed because there are times when a person who doesn’t have children wants to leave their estate to an extended relative, but that person wouldn’t be eligible for the tax exemption.

“This bill has been needed because collateral heirs like nieces and nephews have been excluded from having the same tax exemption as lineal heirs do,” Leftwich said. “Collateral heirs have unfairly been excluded from this tax exemption. “This helps correct that problem.”