Inheritance/estate tax by location?

Factual Questions
1

I’m not sure if the title was the clearest, but I tried a few different ways to phrase it, and none of them improved it…

How do states figure out who should be paying state inheritance/estate tax where? Is it based on where the person who died and left the estate previously lived and had residence, or on where the person who had the property left to them now lives? For instance, if Person A lived in Minnesota (which has a state inheritance tax), died, and left property to Person B, who lived in Tennessee (which also has a state inheritance tax) and then moved to Oregon (same thing, or maybe it’s an estate tax), then which state gets the taxes? (Note: this is NOT legal advice… just a general question.)

2

Inheritance tax is not estate tax. It’s paid by the inheritor, in whatever state he is residing in. In your example, the estate (if large enough) will pay Minnesota estate tax, and the inheritor will pay the inheritance tax in either Tennessee or Oregon, depending on when he moved (you don’t really make that clear).

You might want to read this: http://retirementliving.com/RLtaxes.html