Estate Law Questions? Ask an Estate Lawyer.
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.
"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."
I hope this information is helpful.
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
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