Even in death there are tax consequences. In addition to the federal taxes associated with death or estate taxes there are additional state taxes as well.
Here’s some free financial advice: Don’t die in New Jersey any time soon. If you have more than $675,000 to your name and you die in the Garden State, about 54% may go to the IRS and the tax collectors in Trenton.
Better not take your last breath in Maryland either. The tax penalty for dying there is half of a lifetime’s savings. That’s the combined tab from the new federal estate tax rate of 35% and Maryland’s inheritance and death taxes. Maybe they should rename it the Not-So-Free State.
This perverse confiscation also applies to some 20 other states, …
Source: Wall Street Journal
