Ask Experts Questions for FREE Help !
Ask
    QuiltedButterfl's Avatar
    QuiltedButterfl Posts: 1, Reputation: 1
    New Member
    		  
    #1

    May 16, 2009, 02:17 PM
    Estate/Inheritance Tax vs. Gifting
    My mom (currently in hospice care) is concerned about money issues because she saw a commercial on TV about gifting vs. your beneficiary paying taxes. Although she has a recent Will, she wants to know how much each of us will have to pay in taxes once our inheritance is distributed. We each stand to receive about 25 to 30,000 and for some reason she thinks we'll have to pay 42% tax. She is asking about gifting but I don't really have the answers. To be honest, the end is very near and I don't know what to tell her nor do I know if we have time to accomplish anything. She's trying to protect us from being overtaxed (on money she worked hard for and already PAID taxes on). She's pretty distraught and seems to be worring about end-of-life issues. I'd like to put her mind at ease.
    Zazonker's Avatar
    Zazonker Posts: 126, Reputation: 19
    -
    		  
    #2

    May 16, 2009, 02:32 PM
    The short answer is that for estates valued at less than $3.5M for 2009, there is no tax. I assume that will cover her estate.

    I hope this will help put her mind at ease.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    May 16, 2009, 03:30 PM

    First, the heirs to an estate do not pay tax, the estate pays the tax.

    Second, as your first response pointed out, the first $3.5M is exempt from taxation. So, if you are talking about you each getting $25-30K, unless there are a lot of you, there shouldn't be any taxation.
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
    Expert
    		  
    #4

    May 18, 2009, 09:42 AM
    Quote Originally Posted by Zazonker View Post
    The short answer is that for estates valued at less than $3.5M for 2009, there is no tax.
    The state she lives in may have an inheritance tax. That may well have an exemption too.

    Also, under present federal law, you should be aware that "... the estate tax is repealed in 2010, but then the act "sunsets" in 2011 and the estate tax reappears with an applicable exclusion amount of only $1,000,000 (unless Congress acts before then)." http://en.wikipedia.org/wiki/Estate_..._United_States
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Estate Law/Inheritance Law [ 7 Answers ]

Is there a way to claim inheritance when a father did not leave anything to a child in his will and donated everything to a society?

Inheritance of estate [ 1 Answers ]

If an adult was adopted as a child and later discovered that their biological parent has died, according to Louisiana Law, how do they inherit from the dead biological parent's estate?

Inheritance of estate [ 2 Answers ]

If an adult was adopted as a child and later discovered that their biological parent has died, according to Louisiana Law, how do they inherit from the dead parent's estate?

Estate/Inheritance Tax Due? [ 2 Answers ]

I've tried researching this and the legalese leaves me confused. In the state of CA for someone who has died recently and left her two children the value of her estate which is primarily her home and annuities totaling less then a million dollars, is there any state tax due? Is there any federal...

California estate/inheritance tax [ 1 Answers ]

My mother died last year. Her gross estate is worth about 1.2 million, all house. ( Calif real estate). My attorney tells me the amount over 1 mil. Is taxed at 48%. Nowhere can I find information about this tax, or, that the cut off is 2 mil. Any info would be appreciated.

View more questions Search