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    davebla's Avatar
    davebla Posts: 1, Reputation: 1
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    #1

    Oct 29, 2009, 10:56 AM
    Estate and inhertance tax exemption
    My aunt has no children. She will be leaving all of her assets to her sisters. Her estate would be worth less than the current $3.5m federal exemption. What taxes will the sisters have to pay and will there be any estate taxes.

    Dave
    Five Rings's Avatar
    Five Rings Posts: 459, Reputation: 7
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    #2

    Oct 29, 2009, 11:16 AM

    None and no.

    That being said, there are special rules on how to handle IRA accounts and how they are taxed to the beneficiary.

    See:
    Retirement Topics - Beneficiary
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #3

    Oct 29, 2009, 02:37 PM

    There will be no federal estate taxes (as long as her estate when she dies is worth less than the exemption - but don't forget that the exemption is scheduled to revert back to $1M in 2011), and there is no federal inheritance taxes. However, depending on which state your aunt lives in, it's possible that there may be a state estate tax to worry about. And depending in what state(s) the sisters live, they may have inheritance tax consequences as well.
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