Estate and Gift Tax FAQ
Can I avoid paying state estate or inheritance taxes?
6. Can I avoid paying state estate or inheritance taxes?
If your state imposes estate or inheritance taxes, there probably isn't much you can do. However, if you live in two states -- winter here, summer there -- your inheritors may save money if you can make your legal residence in a state that doesn't impose these taxes.
For a comprehensive guide to estate planning, get Plan Your Estate, by Denis Clifford (Nolo).