Which States Impose Harsh Inheritance Taxes?

Not to be confused with the estate tax, which taxes anestate before heirs receive any payouts, the inheritance tax is taken directlyfrom the heir after receipt of the inheritance.

The six states that impose a tough inheritance tax are NewJersey, Maryland, Iowa, Kentucky, Nebraska, and Pennsylvania.  These states typically charge an inheritancetax between 4% and 16%.  However, most ofthese states include exemptions for children, spouses, close family members,and charities.

See Dan Caplinger,These 6 States Tax Inheritances theHardest, The Motley Fool, May 18, 2013.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.