Whatever You Do, Don't Die In New Jersey or Maryland:
New Jersey and Maryland are the only two states in the U.S. that will hit your relatives with an inheritance tax AND an estate tax in 2013.
There are 13 other states that just have an estate tax: Hawaii, Washington, Oregon, Minnesota, Illinois, North Carolina, New York, Rhode Island, Connecticut, Massachusetts, Vermont, Maine, and Washington D.C.
And six that have an inheritance tax: Kansas, Iowa, Indiana, Kentucky, Tennessee, and Pennsylvania.
The rest have NO state tax on what you leave to your relatives.
The tax percentages are different from state-to-state, but estate taxes can hit you with up to 16% tax on your inheritance. Inheritance taxes can get you with up to 10%.