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Bill
Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3152
Experience:  EA, CEBS - 35 years experience providing financial advice
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I recently inherited $450,000 from my fathers estate ...

Resolved Question:

I recently inherited $450,000 from my father's estate after his death in 2006. I looked up the Indiana State Inheritance Tax and it indicated that I will receive a $100,000 exemption and the tax would amount to about $11,750. How correct is this figure and if not correct, what are my tax obligations to Indiana? Also, I could not find out what Federal Taxes I would be responsible for on this inheritance. Can you please provide me information concerning the Federal Taxes I need to pay.
Submitted: 9 years ago.
Category: Tax
Expert:  Bill replied 9 years ago.
Customer

If your father's gross estate was less than $2,000,000 then there is no federal estate tax due. If any of the assets that you received are retirement plan accounts or annuity contracts then there will be federal income taxes on the taxable portion of the funds when you take distributions.

Your estimate for the Indiana inheritance tax is correct, assuming that your share was after allowable deductions for items such as funeral expenses, attorney fees, personal representative fees, and unpaid income taxes for your father.

http://www.irs.gov/formspubs/article/0,,id=112782,00.html#estate_exclu_2003

http://www.in.gov/dor/taxforms/pdfs/ih-6inst.pdf

 

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Customer: replied 9 years ago.
You didn't answer my question regarding the Federal Inheritance tax. You only addressed the Estate tax and I said that the estate tax has been paid.
Expert:  Bill replied 9 years ago.
There is no federal inheritance tax only federal estate tax.

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