The vast majority of Americans shouldn’t be scared of federal “death taxes” because only estates that are worth $11.58 million (or more) face this type of tax. However, you shouldn’t comfort yourself with the “it’s perfectly fine” attitude just because your assets are far away from the federal estate tax threshold.
Why? Because you may confront a tax bill in the near future if you live in one of these states. Most states have minimized if not eliminated for good their death taxes in recent years, but some still impose an estate tax or/and an inheritance tax.
So, if you’ll spot the state you live in here, keep your eyes wide open because your heirs could come upon a state tax collector.
