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For example, investigating someone for free with internet search methods will likely to turn up some internet postings, and in some cases a phone number, address, or email. There isn't any way to verify this information but with a little luck one of the free search services might be able to turn something up for you.
The next layer of investigation involves more sensitive data, and as a result is more protected - and yes, it costs money to get it. The nice part about it is that the information comes from public records data sources - meaning there is some verifiable document out there that says, "John Doe lived here," or "this social security number was registered in New Jersey and is valid." This hasn't really exposed any overly sensitive data at this point, and as you might expect this level of investigating someone is still very cheap and can be done in bulk (many searches for a single fee most likely). SSN verification at this level doesn't tie a name to a SSN, but it does certify the existence of the number and where it was issued.
Digging deeper when investigating someone means prying where most eyes simply don't belong. Frequently this third data layer will contain some information about assets and possibly arrest records or death records. It might contain liens or other cursory financial data about the person - income, assets, mortgages. Most people just have no business knowing this information but some (perhaps involved in a divorce or criminal investigation) might.
The next, and most sensitive layer of investigation involves deeply personal financial data, and is covered by specific laws of the Fair Credit Reporting Act (FCRA). This will include verifying (by name) a social security number, employer verification, eviction records, criminal background check, previous addresses all very much in specific detail. Needless to say this level of investigating someone always requires the consent of the person being probed - unless the search is being done by law enforcement involving a criminal investigation.
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There are only a handful of states that are still enforcing this type of tax. Most states have done away with it completely but the following states continue to collect on all inheritances: Tennessee, Pennsylvania, Oregon, New Jersey, Nebraska, Maryland, Kentucky, Kansas, Iowa, and Indiana.
If you do live in a state that was listed, the amount of tax you will be charged will depend on the laws on the books of your particular state. It is a good idea to seek professional advice so you pay the right amount and do not find yourself in trouble down the road.
How each state determines the amount of the estate tax to be paid depends on how much money you were left and your relationship to the person who has passed away. The closer you were in blood relations to the person, the less your taxes are likely to be.
Since you already have the right to the money owned by your spouse, most states do not charge a tax on money left from one spouse to another.
Similarly, you will pay considerably less if the deceased was one of your legal parents. Most states take a deduction off the top which is not taxable, and then charge a lower estate tax on the remaining amount. The percentage of the tax will be lower if parents and children are involved.
In the event someone who was not your blood relative or spouse leaves you money, you will have to pay considerably higher amounts of taxes. The exact amount will be determined by the guidelines in your state.
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