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    suzannewxy's Avatar
    suzannewxy Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Mar 6, 2012, 10:22 AM
    Avoiding inheritance taxes
    Is it wise to add my name to the deed on parents home in Virginia to avoid outrageous inheritance taxes?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Mar 6, 2012, 10:50 AM
    If it is not inheritance, it will be treated as gift. And your parents must pay gift tax.
    In 2011 and 2012 and estate tax exclusion amount is 5 million and the estate tax rate is 35%. http://taxipay.blogspot.in/2008/02/t...eritances.html
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #3

    Mar 6, 2012, 12:29 PM
    The web site that Mukata referenced has a glaring error - the first sentence seems to have left the word "not" out, so it reads as if heirs must pay federal inheritance tax. It should read as follows:

    Any money and property you receive as inheritance, you (the receiver) do not pay any federal tax except if you inherit a traditional IRA.
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