State Estate Taxes

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Fewer than half of the states collect their own estate tax, separate from the federal estate tax. Even in these states that do impose a tax, most estates don't end up owing any tax, because generally, only large estates are subject to the tax.

Still, if you live or own valuable property in any of these states, you need to know the state tax rules when you do your estate planning. If you think your estate might have a hefty tax bill, you may be able to take steps to reduce or eliminate the eventual tax liability.

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