If your state imposes an inheritance tax then you could owe the state money on the property that you inherit. An inheritance tax is different from an estate tax which is imposed on the full value of the estate, before it is distributed to beneficiaries and regardless of the relationship of the beneficiaries to the decedent.
In Pennsylvania, for example, an inheritance tax may be imposed based on the value of the decedent’s estate less any allowable deductibles. The amount of the tax depends on the relationship between the decedent and the beneficiaries. Spouses are not required to pay any inheritance tax when they inherit property or money from their spouse. Children and grandchildren (known as lineal heirs) are taxed at 4.5%, siblings are taxed at 12%, and everyone else is taxed at 15%.
A state estate tax may also be imposed if the estate exceeds the amount allowable under the law.
As a wrongful death lawyer, I hate to see families suffer the financial loss of their loved one’s hard earned assets at a time when they are grieving an unimaginable loss. Thus, I encourage you to speak to a lawyer about your loved one’s death and estate as soon as you are able.
Related Estate Taxes Articles:
- Does Your State Have an Estate or Inheritance Tax? ( January 7th, 2011 )
- How the Obama Tax Deal Could Effect Estate Taxes ( December 13th, 2010 )
- How Will 2011 be Different Than 2010? ( August 30th, 2010 )
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