Death and taxes are the two things you can't avoid. Even worse, they'll tax you when you're dead! Take our quiz to test your knowledge of the differences between the two kinds of death taxes: estate tax and inheritance tax.
There is a federal estate tax that covers all U.S. estates, but 18 states collect their own estate taxes on top of the federal tax.
Trick question! There is no federal inheritance tax. Inheritance taxes are levied exclusively by individual states.
Only seven states charge an inheritance tax, so consider yourself lucky if you don't live in one of them.
Yup, you'll get slammed from all sides if you live (or more accurately, die) in Maryland or New Jersey.
Only the inheritance tax is paid by the beneficiaries of the assets. The estate tax is paid by the estate itself through the executor of the estate.
Indiana wins the prize with the highest marginal inheritance tax rate of 20 percent on the largest estates.
After the estate tax was repealed for a year in 2010, Congress passed a 35 percent estate tax rate for 2011 and 2012.
The exclusion threshold for the estate tax is currently $5 million, meaning that all estates worth less that $5 million don't owe a cent in estate tax.
In both Iowa and Pennsylvania, there is no exclusion threshold from paying inheritance tax.
Federal estate tax charges a flat rate on all estates that exceed the $5 million threshold. Most states, however, charge different inheritance tax rates for family and non-family beneficiaries.
Non-family beneficiaries — that aren't tax-exempt charitable institutions — pay 15 percent of the inheritance. Even siblings have to pay 12 percent.
Yes, this one is true. If you leave money or other assets to your spouse, all of those assets are exempt from estate or inheritance taxes.
In fact, life insurance benefits are counted toward the value of an estate, not subtracted from it.
According to estimates from the Tax Policy Center, only 3,300 estates will owe estate tax under current tax law.
Since the exemption for federal estate tax is $5 million and the Tennessee state inheritance tax exemption is $1 million, the beneficiaries will likely have to pay the state some money.
According to current tax law, the estate pays taxes on the value of the estate exceeding $5 million, which is $1 million. 35 percent of $1 million is $350,000.
Yes, a tenth of a percent of Americans supply over half of the total estate tax revenue.
Do you need further proof that the estate tax exclusively taxes the rich? The "lower" 90 percent of income earners contribute less than 2 percent of total estate tax receipts.
In 2011, federal estate taxes are estimated to bring in $10 billion to the government, which is only 1 percent of total tax revenue.
Kansas and Oklahoma took their cue from the feds and decided to kill state estate taxes from 2010 through 2012.