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Estate Tax or Inheritance Tax?
by Staff
Death and taxes are the two things you can't avoid. Even worse, they'll tax you when you're dead! Take our quiz to test your knowledge of the differences between the two kinds of death taxes: estate tax and inheritance tax.

Is the estate tax a federal tax, a state tax -- or can it be both?

  • federal tax
  • state tax
  • sometimes both

True or False: The federal inheritance tax rate is 25 percent.

  • true
  • false

How many U.S. states charge an inheritance tax?

  • 43
  • 27
  • 7

Which of the following states does NOT charge both a state inheritance tax and a state estate tax on its residents?

  • Maryland
  • California
  • New Jersey

True or False: Both the inheritance tax and the estate tax are paid by the beneficiaries of the estate.

  • true
  • false

Under 2012 tax law, what is the highest inheritance tax rate levied by any state government?

  • 10 percent
  • 20 percent
  • 30 percent

Under 2012 tax law, what is the flat federal estate tax rate?

  • 20 percent
  • 35 percent
  • 45 percent

Which of the following estates would be subject to the estate tax in 2012?

  • an estate worth $1 million
  • an estate worth $3 million
  • an estate worth $5 million

What is the lowest exclusion threshold, or exemption from paying a state inheritance tax?

  • $0
  • $100
  • $1 million

Which of the following "death taxes" charges different tax rates to blood relatives of the deceased and non-related beneficiaries?

  • federal estate tax
  • inheritance tax
  • neither

In Pennsylvania, direct descendants owe 4.5 percent of their inheritance to the state. What percentage do non-related beneficiaries pay?

  • 10 percent
  • 15 percent
  • 35 percent

True or False: Assets that are left to a surviving spouse are exempt from both federal estate tax and state inheritance taxes.

  • true
  • false

Which of the following items CANNOT be deducted from the gross value of an estate to calculate the taxable value?

  • life insurance benefits
  • charitable contributions
  • funeral expenses

How many deaths in 2011 will result in the payment of estate taxes?

  • 3 million
  • 333,000
  • 3,300

If a resident of Tennessee dies and leaves an estate worth $2 million, will the estate and its beneficiaries owe federal estate tax, state inheritance tax, both, or neither?

  • Federal estate tax
  • Tennessee inheritance tax
  • Both

The federal estate tax rate is 35 percent. Therefore, how much does a $6 million estate owe in estate taxes in 2011?

  • $2.1 million
  • $350,000
  • $0

What percentage of all federal estate taxes is paid by the top 0.1 percent of income earners?

  • 12 percent
  • 51 percent
  • 99 percent

What percentage of all federal estate taxes is paid by income earners in the 0 through 90th percentiles?

  • 1.8 percent
  • 12 percent
  • 39 percent

What percentage of all federal tax revenue is paid by the federal estate tax?

  • 1 percent
  • 14 percent
  • 34 percent

Federal estate taxes were temporarily repealed in 2010. Which of the following states did NOT repeal its state estate tax in both 2011 and 2012?

  • Kansas
  • Oklahoma
  • Vermont