The Final Indignity: Estate Taxes
Kiplinger's Personal Finance (07/02) Vol. 56, No. 7 p.88; Roha, Ronaleen R.

Those who may be exempt from the federal estate tax, which is set to expire then be resuscitated after 2010, still need to be aware that they may be subject to several different death taxes that vary from state to state. All 50 states levy the pickup tax, which absorbs a dollar-for-dollar credit allowed on the federal estate tax return, and only applies to those estates that owe federal taxes. This year's imposition of a 25 percent reduction of the state death tax credit every year through 2005 would deprive states of much needed funds, and many have decided to go against the federal law. The inheritance tax exists in 11 states and taxes assets inherited by non-exempt persons. Ohio and Oklahoma are the only states that still have the estate tax that applies to the whole estate.


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