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» RhyneN - Karin - Estate or Inheritance Taxes

<Or is there some difference? >>

The Federals levy only estate taxes. Many states levy estate taxes equal to the Federal credit for state taxes, so in these states, estates pay just the amount of the Federal tax, but send a little of the tax to the state government and the rest to the Federals.

Historically, many states levied inheritance taxes. These taxes varied in percentage according to who you left your money to. Money left to a spouse was hit the least. Money to your children was taxed a little higher, and money left to more distant relatives was taxed at an even higher rate. As the years have past, many states changed their laws and eliminated their inheritance tax and in its place enacted an estate tax equal to the Federal credit for taxes paid to the state.

-- posted by RhyneN