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| Questions | Discussion |
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An inheritance tax is a tax
imposed on the people (beneficiaries) who receive property from the
deceased. The tax is calculated separately for each beneficiary, and
each beneficiary is responsible for paying his or her own inheritance
taxes. Those states that have inheritance taxes frequently tax spouses
and children of the deceased at lower rates than other heirs. An estate tax is a tax imposed on the deceased's estate as a whole. The executor fills out a single estate tax return and pays the tax out of the estate's funds. The heirs will only be held liable for the tax if the executor fails to pay it. The federal government imposes an
estate tax on all citizens and residents of the United States. It
imposes no inheritance tax. Every estate gets an estate tax deduction
for all property received by the deceased's spouse, as well as a $3.5
million standard exemption for all other property. Thus, many middle
class Americans will owe no federal estate tax. Texas does not have an estate tax
or an inheritance tax of its own. |
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Board Certified - Estate Planning and Probate
Law