Federal estate and gift taxes. However, see Line 16 , later, if you had income in respect of a decedent.A. local property taxes. B. state excise taxes. The Estate Tax is a tax on your right to transfer property at your death. While a federal estate tax is imposed only on large estates, some states impose taxes on estates with a lower value than the federal exemption. This blog serves as a practical resource on all things tax – from federal and state taxes to more nuanced areas like wealth planning.