State estate tax

State estate tax is a financial levy imposed by some states on the total value of a person’s estate after death, before assets are passed on to heirs or beneficiaries. It functions separately from federal estate tax and varies by state in terms of exemption limits and tax rates. Typically, only estates exceeding a certain threshold are taxed, which aims to prevent overly large inheritances from becoming a financial burden on the estate or beneficiaries. Understanding specific state laws is important, as estate tax obligations depend on the jurisdiction and the estate’s total value at the time of death.