A report says consumers looking to retire may want to consider moving to states that provide fewer tax implications than others.
Bankrate.com reports most retirees seek to move to states that don't have income taxes, however they may still have to face taxes in the forms of Social Security benefit or pension tariffs. In those scenarios, it may be best to identify the 14 states in which Social Security benefits are taxed. Those are Colorado, Connecticut, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont and West Virginia.
Some states are also more forgiving on state and property taxes, said the report, while 17 states impose taxes on a person's estate. On top of that, several states impose an inheritance tax that's separate from the estate tariff. Potential retirees are advised to consult a financial planner on the estate taxes in their state to determine what kind of charges they may incur if they try to pass money down to heirs.
Life insurance may be a viable alternative in terms of estate planning. The policies can help retirees avoid estate tax implications when they try to leave a financial legacy behind.