The estate pays estate tax before assets are distributed, while inheritance tax is paid by the beneficiaries who receive the inheritance. Estate tax is based on the total value of the deceased's ...

That’s particularly true in a handful of states where an inheritance tax still applies. Unlike federal estate taxes, which affect only the ultrawealthy, these state-level taxes can hit ordinary heirs.

A quick and easy paperwork change could avoid your children paying inheritance tax on your pension if you act now. Here’s how ...