Incentives induce people to take certain actions, and avoid other actions. When it comes to tax policy and the death tax, wealthy people make financial decisions to avoid it. And now that state legislators have repealed North Carolina’s death tax, the signal being sent to the wealthy is that they are welcome in North Carolina and that their life’s work and legacy won’t be targeted when they die.

“There is no doubt that without the estate tax and the gift tax, and the reduced individual income tax, North Carolina becomes a much more attractive state for wealthy retirees to live,” she said.

Quick, former city managing partner for Womble Carlyle Sandridge & Rice, said that despite the politics involved, “it is an issue that crosses party lines.”

“We have seen examples of wealthy North Carolinians, Republicans and Democrats, change their domicile to avoid the estate tax,” Quick said. “We have some clients who considered moving just across the border to South Carolina or setting up a primary residence in Florida to avoid the estate tax.

“They want to pay their fair share, but not more than that.”