Accepted Answer

Hello again XXXXXX,

Thank you for the additional information.

Your attorney is correct that you will owe no inheritance tax on the money you received from your brother's estate. There is no inheritance tax at the federal level. Instead, the IRS imposes an estate tax on estates which exceed a certain value, but your brother's estate was far below the value where estate tax would be imposed.

There are some states which still impose their own estate tax or inheritance tax, which is why I asked the states you live in. Ohio does have an inheritance tax, but it only applies to estates worth more $338,333. SC does not impose any inheritance tax at all.

So you are not libable for any federal or state inheritance taxes on this money that you received.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you XXXXXX

Expert:	Merlo
Pos. Feedback:	99.8 %
Accepts:
Answered:	10/28/2009

Accountant

25+ years tax consulting. Specializing in returns for US citizens living abroad