In all states, the surviving spouse does not have to pay the inheritance tax.
Depending on the state, sometimes children are taxed at a low rate.
Inheritance taxes are paid by certain heirs and beneficiaries when they receive an inheritance.
As the beneficiary becomes a more distant relative or non-relation, the highest rates start to kick in.
States with an inheritance tax, and highest tax rate:
Iowa - 15%
Kentucky - 16%
Maryland - 10%
Nebraska - 18%
New Jersey - 16%
Pennsylvania - 15%