Q: I read your answer to a recent question about inheritance taxes. You might want to point out that some states tax estates in full or at levels less than the federal level. Maryland happens to tax estates over $1 million.

A: Thanks for pointing out that as the federal estate tax exemption has grown larger, many states have opted out of tying their estate taxes to the federal level. This can create some expensive headaches for people whose assets may be below the federal level and above their own state level.

It also helps explain why some people are flocking to states which have no state taxes, like Florida and Nevada.

If you have a large amount of assets — even if your primary asset is real estate worth in excess of $1 million — please talk to an estate attorney about your state laws and what you need to do to reduce any estate taxes that may be owed.

Oct. 16, 2007.