That’s particularly true in a handful of states where an inheritance tax still applies. Unlike federal estate taxes, which affect only the ultrawealthy, these state-level taxes can hit ordinary heirs.

An inheritance tax is levied when a beneficiary inherits assets from the estate of someone who died. There is no federal inheritance tax, but five states currently levy this tax: Kentucky, Maryland, ...

Inheritance and estate taxes, often referred to as "death taxes," vary significantly across the United States. Federal estate taxes apply only to the wealthy, with estates exceeding $13.61 million in ...