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    Pgpotter59's Avatar
    Pgpotter59 Posts: 1, Reputation: 1
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    #1

    Dec 4, 2011, 03:56 PM
    Estate tax totals how does it work?
    My parents estate consisting of 2 houses, 3 commercial buildings and prperty of 10 cottage rentals is worth approx one million. There are four of us who are inheriting this property. I want to know how the estate tax works? Are we taxed all as one or are we taxed individually? As far as I can see if the estate is under one million thyen there is no estate tax for federal and Maine estate tax... so if individual we will be fine but if tax for the total of the estate then not so good... it's all property no money. The way I look at it is I an inheriting a value of $250,000 as well as each of my siblings. That I am not inheriting a million. Would the be true and if so were can I find the exact information to state this. We have a lawyer and he has had a heartattack so have to what for him to improve... and my brother is the excutor and he thinks its as a total. You use the help... thanks
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
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    #2

    Dec 4, 2011, 07:20 PM
    You are not taxed, the estate is taxed. It is the NET total as determined at probate. From my reading of the Fed Estate tax, you are well below the threshold which is, I believe, about $5 Million today but goes back to $1 Million in 2013.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Dec 6, 2011, 07:42 AM
    MA0641 has it right. The ESTATE is taxed, not the heirs. When the heirs are taxed, it is called an inheritance tax.

    Your parents' estate will probably fall below the minimum tax threshold.
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