States tax three types of property: real estate, tangible property, and intangible property. If you own property in more than one state, you owe taxes on the property in each state. For example, if you live in North Carolina and you own a cabin in Utah, you are subject to taxes in both states. You are subject to Utah tax for the cabin and North Carolina tax for the rest of your property. 

 

The state in which you live will tax the real estate and tangible property within its boundaries AND all of your intangible property. Other states will only be able to tax the real estate and tangible property located within their boundaries. 

 

Because state death taxes vary greatly from state-to-state and states may revise tax laws at any time, review each state's laws carefully to assure competent estate planning. However, bequests to "distant" relatives (regardless of how close they are emotionally) are consistently taxed at a higher rate than those to "close" relatives. 

 

There are three categories of state death taxes: 

• Credit Estate Tax
• State Estate Tax
• State Inheritance Tax

 

 

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