Inheritance

pawprint1November 1, 2005

Is the government tax on an inheritance like the tax on winning the lottery? Almost ½? Oh, in America.

Not sure how much to put back. Internet search didnÂt help me.

Thanks!

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spewey

There is no longer a federal estate tax on estates worth $1.5 million or less. Only 2% of American families are now subject to the estate tax.

You may be subject to state taxes however, depending on your state laws.

Do a search on "estate tax" for more info.

Here is a link that might be useful: IRS estate and gift tax page

    Bookmark   November 2, 2005 at 10:50AM
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joyfulguy

If you win a lottery in Canada - no tax.

When Dad passed away, nearly 20 years ago, there was final year tax return to file, death return as well, possibly a different one, as well.

But no Federal or Provincial tax on the inheritance in my hands on receipt.

What it earns in my hands is taxable (at differing rates and times, depending on the type of asset involved).

As I'm in medium marginal tax rate range now, wondering about the wisdom of selling some assets where capital gain has been developed, then rebuying similar asset, in order to trigger capital gain, that'll be taxed at lower rate than at my death, as several assets with substantial gain (even after deducting losses) and retirement fund is all considered liquidated at that time, so a substantial portion of that income would be taxed at top marginal rate.

Good wishes for good use of your inheritance.

ole joyful

    Bookmark   November 2, 2005 at 2:49PM
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