Reciprocal Exemption Law and Legal Definition

Reciprocal exemption is an exemption from inheritance or succession tax of the intangible personal property of residents of other states, conferred by statute in favor of property left by decedents resident in a state which confers a similar exemption to residents of the state in which the statute was enacted.

“Where a decedent resided in one state and had property in another, it was not necessary that there should have been a law of the decedent's state imposing a succession tax within its jurisdiction with a special exemption from such tax in favor of the estate of citizens of another state whose laws impose a like general tax with a like special exemption, before the estate is excused the tax. [Estate of Uihlein, 247 Wis. 476 (Wis. 1945)].