Citizens of Arizona need not think about the inheritance or inheritance tax. Arizona does not have this type of tax that some states place on people who own land in their country of residence (inheritance tax) or inherit land from a person living there (inheritance tax). Despite Arizona not collecting inheritance tax, you may end up paying inheritance tax to another state. When you inherit from someone who has lived in one of the few countries with an inheritance tax (Iowa, Kentucky, Nebraska, New Jersey, Pennsylvania and Maryland), you might find a tax bill with that state. It will be based on the value of all that he has inherited and the close ties he has with the deceased. Surviving spouses are not required to pay inheritance taxes and certain states are excluded from limited inheritance. It's still a tax bill you still haven't planned, though. A federal property tax bill could also occur but only if the deceased has left millions of properties. The federal property tax is paid from the deceased's assets. But very few farms are subject to federal inheritance tax, just two out of every thousand. This is because $10 million, indexed to inflation, and now $11,580,000, is a simple exemption. Only the properties of deceased persons with assets worth more than this exemption may be required to pay inheritance tax. If a person dies with less than the exemption amount in Arizona (currently $11,580,000), their estate is not subject to federal property tax and there is no property tax in Arizona. The descendants and beneficiaries inherit the exempt land tax. Nor do they pay income tax on inherited property because inherited land is not what the IRS calls "regular income." Sources: https://www.barrons.com/articles/the-secure-act-will-upend-the-stretch-ira-strategy-here-are-workarounds-51576778401 https://threatcon5clothing.com/does-arizona-have-an-inheritance-tax/