Inheritance Tax Advice

Get the Most Out of Your Estate with Inheritance Tax Advice

Dealing with an estate after a loved one passes poses a unique challenge for the entire family, which is why inheritance tax advice is so important. After determining every aspect of the estate, a qualified professional can help you approach gift taxes in a way that benefits everyone involved.

You could be responsible for paying inheritance tax

As of 2015, only eight states impose an inheritance tax. If you live in one of those states, or if your inheritance comes from a resident of one of those states, you could be responsible for paying a portion of the estate you have inherited. However, with the right inheritance tax advice, you may not be responsible for paying any taxes at all.

Not only can a professional CPA help you determine if you have to pay any taxes, they may also be able to reduce your tax liability if you do find that you’re responsible for paying an estate tax.

Inheritance tax advice can help you understand and maximize your gift, ensuring you get exactly what your loved one left for you to enjoy.

Eight states that impose a gift tax

  • Indiana
  • Iowa
  • Kentucky
  • Maryland
  • Nebraska
  • New Jersey
  • Pennsylvania
  • Tennessee

There is no federal law regarding inheritance taxes, which means each state is able to enact their own laws. These laws change all the time, and special circumstances may require some states to get more involved. It’s best to speak with a professional to get inheritance tax advice.

Professional advice will simplify the entire estate tax process

Filing taxes is no easy feat, whether you’re filing them at the end of the year or you’re filing an estate tax. Get all of your questions answered and feel confident that you’ve found every deduction possible by obtaining inheritance tax advice.

A team of professional CPAs will be able to simplify the entire process, allowing you to rest easy knowing that you’ll get to most out of your inheritance.

If you could use a little inheritance tax advice, click here. Our team of passionate CPAs has the knowledge to provide you with all the information you need regarding your estate taxes.


Inheritance tax advice FAQ

What is the difference between an inheritance tax and estate tax?

The difference between an inheritance tax and an estate tax is the person who’s responsible for paying it. In the case of inheritance tax, the person inheriting the gift is responsible for paying the taxes. Estate taxes are more common and are taken directly from the estate before it is divvied up among beneficiaries.

How large does the estate have to be before inheritance tax is an issue?

Generally, estate taxes only go into effect for very large sums of money. For example, most estate taxes do not go into effect until the gift reaches at least one million dollars. Even if your state requires an estate tax, most beneficiaries don’t have to worry about this tax, but obtaining inheritance tax advice can ensure this is the case in your situation.

Is everyone required to pay inheritance tax on large estates?

Your relationship to the deceased is important to consider when it comes to inheritance taxes. In most cases, spouses are exempt from paying any estate taxes. Children and dependents are also able to qualify for an exemption, but in some cases, only a portion of the estate is exempt. In general, those with no familial relationship are the most likely to pay the highest gift taxes.

What are the tax rates on inheritance?

Inheritance taxes can vary greatly. Some states may charge as little as 1 percent, while others may charge up to 18 percent. Click here for a chart of inheritance tax rates in each state.

Are deductions available on inheritance taxes?

There are some possible deductions that include:

  • Marital deduction
  • Charitable deduction
  • Mortgages and debt
  • Administration expenses of the estate
  • Losses during estate administration

It’s best to ask a tax professional for inheritance tax advice to understand all the deduction possibilities that are available in your particular situation.

What is included in the estate?

Understanding exactly what’s included in the estate is the first step to understanding what may or may not be taxed. The estate is everything that is inventoried at the date of death. The estate may consist of:

  • Cash and securities
  • Real estate
  • Insurance
  • Trusts
  • Annuities
  • Business interests
  • And more

The estate does not include items or assets that are owned solely by a spouse. Lifetime gifts that are complete before the date of death, as well as life estates given to the decedent by others where the decedent has no control or power at the date of death, are not included in the estate either.

What needs to be included in an inheritance tax return?

It’s best to get inheritance tax advice from a professional to make sure you have all the proper paperwork, but a few things that will be needed include:

  • Copies of death certificate
  • Copies of the decedent’s will and/or relevant trusts
  • Copies of appraisals
  • Copies of relevant documents regarding litigation involving the estate
  • Documentation of any unusual items shown on the return