Six states have an inheritance tax, which is similar. However, instead of taxing the estate, inheritance taxes are based on the amount the heirs receive and usually their degree of relationship to the decedent.
The heirs pay the inheritance tax, not the estate.
New Jersey and Maryland have both an estate tax and an inheritance tax.
It is important to understand state estate taxes, so you can ask your estate planning attorney what the rules are in your state and in any state you might consider moving to in your retirement years.
An estate planning attorney can guide you in creating an estate plan that meets your unique circumstances.
