The inheritance tax is determined at the state level and applied to the inheritors. This tax is initiated by the state and may be placed instead of or alongside estate taxes. Upon an individual's death, the tax is placed on money or assets his or her beneficiary inherits from the estate, releasing the estate itself. Determination of this tax is dependent upon the beneficiary's relationship to the deceased. The tax can be applied to anything of value. For example, jewelry, real estate and collectibles can be taxed. There is an exemption for spousal transfer of inheritance.

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