Question By: If the total value of properties acquired by inheritance or bequest and properties acquired under taxation by settlement at the time of inheritance (after subtracting the amount of debt, etc., and adding the value of properties donated within three years before commencement of inheritance) exceeded the amount of basic exemption, inheritance tax is imposed on the excess amount (total taxable estate).
In this case, a declaration and payment of inheritance tax is required within ten months from the day following the day when the death of the decedent was notified.
If the net estate amount exceeds the amount of basic exemption, inheritance tax will be imposed, so a declaration and payment of inheritance tax need to be made.
Net estate amount represents the total amount of gross estate amount and properties donated under taxation by settlement at the time of inheritance, after subtracting the tax-exempt properties, funeral expenses and debts and adding the properties donated within three years before commencement of inheritance.
In general, inheritance tax affects you if you receive an inheritance from someone who lived in a state with inheritance tax, or if you're the beneficiary of property that's in one of these states. A taxable inheritance can include money, real estate, personal property that generates income, and the proceeds of a life insurance policy. Surviving spouses are exempt from inheritance taxes in all states. The children and parents of a decedent are often exempt too, but not in all states. You may also be exempt from taxation if your inheritance was worth less than $500.
The inheritance tax rate vary based on a beneficiary's relationship to the decedent and based on the fair market value of the assets inherited. States set a deadline for you to pay the tax, and you also have to file an inheritance tax return.
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