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Christopher Phelps
Christopher Phelps, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2710
Experience:  CPA, CFP, PFS, Tax Practitioner 21 Years, Member AICPA/CSCPA Tax/Financial Planning Committee Member
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Does Virginia require an Inheritance Tax stamp?

Resolved Question:

Does the state of Virginia require an Inheritance Tax waiver stamp next to the signature on the transfer of Ownership form certifying that no Inheritance Tax waiver is required?

Submitted: 10 years ago.
Category: Tax
Expert:  Christopher Phelps replied 10 years ago.

Virginia does not have an inheritance tax (i.e. a tax paid by the beneficiary on amounts received due to the death of the previous owner). Rather, Virginia does impose an estate tax.

The Virginia estate tax is a transfer tax on the estates of resident decedents and the estates of nonresident decedents having real estate or tangible personal property located in Virginia. Estates of alien decedents having real estate or tangible personal property located in Virginia, as well as intangible personal property attributable to Virginia are also subject to the tax. Only those estates that are required to file a federal estate tax return will be subject to the Virginia estate tax requirements (i.e. estates of decedents whose fair market value exceeds $2,000,000). Virginia will only issue a "certification of payment" after a VA estate tax return has been filed. Accordingly, if no estate tax return is required to be filed, the VA Dept. of Revenue will not certify that no estate (or inheritance) tax is due as this would likely preclude their right to assess such tax in the future.

The personal representative/executor of an estate must file a Virginia Estate Tax return (Form EST-80) whenever required by federal law to file the federal estate tax return.

What form are you reviewing where this is required?

Customer: replied 10 years ago.

Transfer stock out of decedent's name ownership form

Prudential Common

An Inheritance Tax Waiver Stamp next to the signature on the Transfer of Ownership Form certifying no Inheritance Tax Waiver is required OR an Inheritance Tax Waiver Form decedent. The Stamp may be obtained by the financial Institution providing the Medallion Signature Guarantee. Depending on the decedent's state of legal residence, the financial institution may advise you that an Inheritance Tax waiver Form is required. In this event, you can obtain an Inheritance Tax waiver Form and Instructions from the state agency decedent's state of residence.

The Bank-Bank of America- knows nothing about this.
State of Virginia
Augusta County Assistant Commissioner of Accounts knows nothing about it either.

Expert:  Christopher Phelps replied 10 years ago.

I would call the transfer agent or custodian of the shares and ask them what the procedure is when there is no inheritance tax to be waived. The verbage you quoted even allows possibility that there may be no inheritance tax (i.e. "the financial institution may advise you that an Inheritance Tax waiver Form is required"). The number should be in the transfer paperwork. The answer may be that you can ignore the requirement.

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