Are inheritances taxed?

This depends on the state you live in. Here in CA, 1/1/21 our governor did initialize state death

taxes (also known as estate taxes). He has said that he will follow the federal government’s new

proposal. Under Biden, he has proposed a $1 Million gross valued exemption with a 65% tax

rate. If this passes, then CA will also follow suit. You can create an estate plan that does

incorporate tax planning that will reduce or maybe even limit your exposure to death taxes.