Inheritance Tax Rates and Exemptions, As of January 1, 2012

State Ind. Heir type Spouse/Charity Class A Class B Class C Class A Class B Class C Class A Class B Class C Lineal Heirs All others Immediate Relative Remote Relative All others Class A Class C Class D Lineal Heirs Siblings Others Exemption 100% Exempt $100,000 $500 $100 100% Exempt No exemption No exemption 100% Exempt $1,000 $500 100% Exempt No exemption $40,000 $15,000 $10,000 100% Exempt $25,000 $500 $3,500 No exemption No exemption Rate (Min. to Max.) 0 1% - 10% 7% - 15% 10% - 20% 0 5% - 10% 10% - 15% 0 4% - 16% 6%-16% 0% 10% 1% 13% 18% 0% 16% 16% 5% 12% 15%

Iowa

Ky.

Md. (a) Nebr. (b)

N.J. (a, c)

Pa.

Note: Inheritance taxes are levied on the the posthumous transfer of assets based on relationship to the decedent. Generally, Class A beneficiaries are spouses, children, and often siblings. Class B beneficiaries are non-immediate family members. Class C beneficiaries are non-family members. Unlike estate taxes, the term "exemption" here applies not to the size of the estate, but the size of the gift itself. (a) Maryland and New Jersey have both an estate tax and an inheritance tax (b) Nebraska's inheritance tax is levied at the county level. (c) New Jersey's inheritance tax only applies to estates over $1M. Source: American Family Business Foundation. Tax Foundation www.TaxFoundation.org