We have already had a few posts this year about changes to the tax laws as well as information about sales taxes. And with that in mind, the old axiom about the two certainties in life, death & taxes, is the topic for today. The TaxFoundation says there are 18 states with an inheritance or estate tax – with one state, Maryland, having both! Hawaii and Washington State have the highest estate tax top rates in the nation at 20%. The distinction between the two, they point out, is that estate taxes are paid by the decedent’s estate before assets are distributed to the heirs while Inheritance taxes are remitted by the recipient of a bequest.
“Estate and inheritance taxes are burdensome. They disincentivize business investment and can drive high-net-worth individuals out-of-state…”