Inheritance $$$$$ tax's????

[FordSVTFan]

My lawyer says something different. I inherited 50% of my grandmothers estate (other half went to my aunt) and was told we both will pay the same tax. If I was a cousin, niece/nephew, etc.., the % paid would be different.

If she died intestate, then the % of your inheritance is different, but not the tax. The Fed. Govt will get their share no matter what. Do you really think the Govt will collect less of a tax because of the relationship with the decedent? The answer is no. The tax code is clear.

 

[Lightningfr]

thats crap

 

[SolarYellow]

If she died intestate, then the % of your inheritance is different, but not the tax. The Fed. Govt will get their share no matter what. Do you really think the Govt will collect less of a tax because of the relationship with the decedent? The answer is no. The tax code is clear.

No offense to you but I think my attorney (who deals with estates here in PA) knows what he is talking about. In case we are not clear, I'm focusing primarily on the state income tax instead of the fed tax which you are mentioning. You are right that the gov't will get their share no matter what BUT there are a few legal ways to stop them from getting their grubby hands on too much.

 

[FordSVTFan]

No offense to you but I think my attorney (who deals with estates here in PA) knows what he is talking about. In case we are not clear, I'm focusing primarily on the state income tax instead of the fed tax which you are mentioning. You are right that the gov't will get their share no matter what BUT there are a few legal ways to stop them from getting their grubby hands on too much.

Indeed I prefaced my statements based on the Fed. I also stated that state Inheritance tax would differ. No offense, but I guess you didnt read that part.

There are many ways to prevent Fed. Inheritance Tax, such as setting up Trusts or placing real property in joint tenancy, etc.

 

[taronis]

if hildabeast wins SHE'LL TAKE IT ALL..............

27%...................UNLESS IT IS IN A PROTECTIVE TRUST

 

[Chopin]

Its stealing from the dead!

 

[FordSVTFan]

Its stealing from the dead!

That is quite true!!

 

[427Windsorman]

Edit: After reading that wiikipedia entry... it looks like you shoudln't be paying any taxes on anything under $675,000. Looks like you guys who paid taxes on less then that were getting hosed.

You should not be taxed on inheritance whatsoever. It was already taxed to begin with, for one thing. I better not even start on this subject as it is one of my hot buttons..... :cuss:

 

[FordSVTFan]

You should not be taxed on inheritance whatsoever. It was already taxed to begin with, for one thing. I better not even start on this subject as it is one of my hot buttons..... :cuss:

Since we know that these taxes are in plan, the best thing to do is appropriate estate planning. Through well formulated planning, you can almost eliminate all potential transfer/inheritance taxes.

 

[427Windsorman]

Since we know that these taxes are in plan, the best thing to do is appropriate estate planning. Through well formulated planning, you can almost eliminate all potential transfer/inheritance taxes.

You are 100% correct, but my contention is that it should not be necessary to do that. That is just treating the symptoms of the disease, and not the cure.

 

[05 Roush]

Its stealing from the dead!

That's incorrect thought. It's stealing from the living who've received gifts from the dead.

Let no gift be left untaxed. :bash:

 

[s_x_i]

I deal with Estates a lot... the majority of people with any kind of wealth are using planning to bypass these taxes.

It's the people who don't plan that get reamed. With adequate Estate planning, the majority of these taxes can be avoided.

Unfortunately for the OP, his relative is dead, so the planning thing is a mute point.