The state you live in may levy a separate estate tax or inheritance tax and may also charge a state gift tax. Because of all these law changes, in the coming years there will most likely be a lot of changes in the way states impose their estate taxes. Depending on the laws in each state, this change could cause some estates to pay more in transfer taxes. This section covers federal taxes only, so check with your attorney or other estate planning professional about state tax issues when you have your estate plan done.
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