The U.S. government now excludes up to \($1.5\) million of an estate from tax. However, states vary in how they tax estates, whether they tax inheritances, and how much is excluded. New Jersey, for example, does not tax the inheritances of a deceased person’s spouse and children but does tax other people who inherit.

1. Research Find out how your state taxes estates and inheritances.

2. Write About It Why do federal and state governments exclude parts of estates from taxation? What is your opinion about the variation in estate and inheritance taxes depending on the state where you die?