Virginia does it right (from the law firm of McGuireWoods):
The leaders of the Virginia General Assembly have agreed to a 2006-08 state budget, with which the Virginia estate tax (often called the “death tax”) will be repealed for the estates of all Virginians who die on or after July 1, 2007. Since 2002, with the phaseout of the dollar-for-dollar federal credit for state death taxes, the state taxes remaining in some 20 states have been both an additional burden and a complication for citizens of those states and others owning property in those states. As of July 1, 2007, this will no longer be true of Virginia, if this budget agreement is given final approval by the General Assembly as expected, and Governor Kaine signs it into law as he has said he would do.
