Capital Gains and Losses
Capital Gains Tax Questions? Ask a Tax Advisor for Answers ASAP
In general, on the federal level, inheritances are generally not taxable. However, some states do tax inheritances. What state are you located in? What state did your mom reside in at the time of her death? SEE BELOW:
Who Pays Inheritance Taxes
State inheritance taxes are generally not applied to life insurance proceeds if the beneficiary is any of your linear family members. This includes your spouse, children, grandchildren, parents, brothers and sisters. Nonlinear family members, such as nieces and nephews, brothers/sisters-in-law and cousins, may have to pay inheritance taxes on the life insurance proceeds if any are the beneficiary. Those who are not considered family members typically pay the top inheritance tax rates.
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