Quote Originally Posted by Major Robert Dump View Post
I am getting state inheritence taxes mixed up with the "death tax."

If inherited an estate worth 100k tomorrow, when I filed my state tax return I would owe 10% of the value. If I needed to liquidate some of the estate (to cover the taxes or for whatever reason) and I got a capital gain on its base cost, then I would also have to pay a capital gains tax on top of the 10%.
That's not correct if you're in Oklahoma. Oklahoma currently exempts the first $3m of the estate, with the graduated tax only applying to amounts over and above that. If you inherited an estate worth 100k tomorrow, you would owe nothing.

http://www.tax.ok.gov/oktax/forms/45499.pdf
Exemption limits are described on page 6.

I highly doubt if there is any state that imposes an estate tax which does not include a very sizable exemption.