Question
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Apr 28, 2005, 03:45 PM
| | New Member  | | Join Date: Apr 2005
Posts: 1
| | | inheritance tax
My father recently passed away. My siblings and I are trying to take care of our inheritance. The big questions I have are: what is the federal tax withholding on inheritance, does CA have a state tax on inheritance, and how do all these things get managed? I want to know what percentage of everything is going to be taxed before I do anything else in regards to distribution of funds. Can anyone help?
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Answers
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Apr 29, 2005, 05:27 AM
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#2
| | | Tax Expert
Join Date: Feb 2005 Location: Atlanta, Georgia
Posts: 10,043
| Missionary:
I can advise you, but I need to know how large is your father's estate.
The first $1.5 million is exempt from federal estate taxes.
There is no California inheritance tax, but there are estate/death taxes that are equal to the credit allowed under the federal estate tax for state death taxes.
In other words, California death tax is driven by the federal estate tax. Whatever you pay to California, you get a dollar-for-dollar credit on the federal estate tax. The $1.5 million dollar exemption applies to the California death/estate tax as well.
If your father's estate is less than $1.5 million, you have no filing requirement for either the federal or California estate taxes.
If the estate is more than $1.5 million, then you need to contact a California tax professional who has experience in both state and federal estate taxes. Do not do this yourself! It is not a field for amateurs. |
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May 18, 2005, 08:29 PM
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#3
| | New Member
Join Date: May 2005 Location: Cottonwood, CA
Posts: 13
| Inheritance Tax in California
Does the 1.5 million dollar California Inheritance tax exemption also apply when there is property involved? | |
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May 19, 2005, 10:48 AM
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#4
| | | Tax Expert
Join Date: Feb 2005 Location: Atlanta, Georgia
Posts: 10,043
| Yes it does. It applies to all assets of the estate, be they cash, equities, real property, whatever. | |
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Sep 29, 2007, 08:41 PM
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#5
| | New Member
Join Date: Sep 2007
Posts: 1
| Quote: |
Originally Posted by missionary My father recently passed away. My siblings and I are trying to take care of our inheritance. The big questions I have are: what is the federal tax withholding on inheritance, does CA have a state tax on inheritance, and how do all these things get managed? I want to know what percentage of everything is going to be taxed before I do anything else in regards to distribution of funds. Can anyone help? | when my siblings and I recieve our inheritance in Ca are we going to be taxed???
I know that NY inheritance tax is 40%.....
that is sear robbery!!
thx
jj | |
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Sep 30, 2007, 01:15 AM
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#6
| | New Member
Join Date: May 2005 Location: Cottonwood, CA
Posts: 13
| What I found out about my situation (in California) was that California has not inheritance tax. It has been a couple of years since I looked into it so there may have been a change or there may be a maximum on no tax. My situation was just under one million. Hope this helps. Bob | |
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Oct 1, 2007, 05:03 PM
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#7
| | | Tax Expert
Join Date: Feb 2005 Location: Atlanta, Georgia
Posts: 10,043
| California has NO inheritance tax??
Or did you mean that Calfornia's inheritance tax did not apply in your case due to the size of your estate?? | |
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