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N Cal Attorney
N Cal Attorney, Attorney
Category: Estate Law
Satisfied Customers: 9136
Experience:  Since 1983
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Do you have to pay an inheritance tax on an estate, or have

Customer Question

Do you have to pay an inheritance tax on an estate, or have the taxes been paid before you inherit?
Submitted: 4 months ago.
Category: Estate Law
Expert:  N Cal Attorney replied 4 months ago.

Thank you for your question.

I need to ask in which state the person who left the inheritance died. Inheritance tax law is mostly State law.

Customer: replied 4 months ago.
California
Expert:  N Cal Attorney replied 4 months ago.

No tax.

"California residents do not need to worry about a state estate or inheritance tax, which is a tax that is levied on people who either own property in the state where they died (estate tax) or inherit property from a resident of a state (inheritance)."

...

"The only 'death tax' that California residents need to worry about is thefederal estate tax, and that tax falls on the estate of the person who died, not on the people who inherit that property. There is an exemption of $5 million, which is indexed to inflation and is currently $5,450,000, and only people who die with an estate larger than that exemption will have to pay estate tax. It is estimated that only the richest .14% of Americans will be subject to the estate tax, or only two out of every 1,000 people who die."

from

https://www.legalconsumer.com/inheritancelaw/topic.php?TopicID=4&ST=CA

I hope this information is helpful.

Customer: replied 4 months ago.
how much is the taxes over 5 million?
Customer: replied 4 months ago.
what if the five million is divided by 4 persons
Customer: replied 4 months ago.
is it 40%?
Customer: replied 4 months ago.
I have to retire right now and will have to return tomorrow for the response. Thank You ahead of time.
Expert:  N Cal Attorney replied 4 months ago.

The current rate is from 18% to 40%, see http://www.fool.com/retirement/general/2015/12/18/2016-estate-tax-rates.aspx

but the estate tax is paid by the executor of the estate, not by the individual heirs, see

https://www.irs.gov/instructions/i706/ch01.html

and

https://www.irs.gov/pub/irs-pdf/f706.pdf

Expert:  N Cal Attorney replied 4 months ago.

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