Nevada does not have an inheritance tax, however, it does have an estate tax based on the Federal credit for state death taxes. This tax is imposed on residents as well as non-residents with NV real property and/or business interests. A return is required to be filed and tax paid within nine months of the date of death if the value of the decedents estate exceeds the level requiring the filing of a Federal Estate Tax return (i.e. form 706). NV does not have a separate form, rather they require that you file the first 4 pages of the Federal Form 706. See the following for instructions ( http://tax.state.nv.us/taxnew/documents/TPI-01%2010%20Nevada%20Estate%20Tax%20Instructions.pdf).
The U.S. imposes an estate tax on estates of decedents with a net taxable estate in excess of $1,500,000 (rising to $2,000,000 in 2006). The net taxable estate is defined as the gross fair market value of all the decedents assets (including taxable gifts for which Form 709 has been filed or required to be filed during the past three years) less allowable deductions such as outstanding mortgages, other debt, funeral expenses, estate administration expenses and other final expenses. You are required to file an estate tax return if the gross value of the decedents assets (plus taxable gifts during the three prior years) exceeds $1,500,000 even if no estate tax is due.
Each individual may give away up to $11,000 per person ($12,000 in 2006), per year with no gift tax consequence. Additionally, to the extent an individual gives gifts in excess of $11,000, he may give up to $1,000,000 over his life without having to actually pay gift tax to the IRS. The only consequence is a requirement to file a gift tax return for each gift in excess of $11,000 per person, per year. Once the $1,000,000 per person, lifetime exemption is used up, the individual will then be required to pay a gift tax to the IRS that will start out at an 18% tax rate and will range up to 49% as additional gifts are given.
Accordingly, your parents each may give you $11,000 free of any gift tax. After that a gift tax return will be required for any gift in excess of that amount given during the same calendar year. I suggest you have your parents gift you $11,000 each in 2005 for a total of $22,000. Then, in January of 2006 they can each gift you $12,000 for a total of $24,000. The total gifts made during that three-month span (i.e. 11/05-01/06) totals $46,000 with no gift tax or gift tax return filing requirement.
Because it is impossible for me to identify and consider all the relevant facts, this advice is not intended or written to be used for the purpose of avoiding penalties, and cannot be used for that purpose.