Inheritance property is any property received from a person who is deceased. It can consist of real property such as a house, business or undeveloped land, or personal property such as automobiles, boats, jewelry, household furnishings and clothing.
Inherited property can include financial instruments such as cash, investment portfolios and life insurance proceeds. Although considered personal property, financial inheritances are oftentimes taxed at a different rate than other types of personal property.
Inheritance tax is assessed based on the fair market value of the property. The tax rate is based on the appraised value and the beneficiary's relationship to the deceased. Individuals who inherit the property are responsible for paying the taxes.
Inheritance taxes are governed by each individual state. Currently, 10 of the 50 states within the U.S. impose inheritance tax. These include: Indiana, Iowa, Kansas, Kentucky, Maryland, Nebraska, New Jersey, Oregon, Pennsylvania and Tennessee.
State taxes are typically not imposed on inheritance property which is passed to the surviving spouse. However, when property is passed to children, family or friends, inheritance taxes are imposed.
Federal inheritance taxes are only imposed on estates valued at more than $2 million. Taxes are charged on the amount that exceeds the threshold. For instance, inheritance property valued at $4 million would be taxed on $2 million. The first $2 million is exempt.
Inheritance tax returns must be filed with the Probate court in the county where the deceased resided. The Estate Executor is responsible for the filing, which must occur within nine months from the date of death. Additionally, inheritance taxes must be paid within the same timeframe. Otherwise, the balance due will be subject to interest fees and late penalties.
Receiving inheritance property isn't as simple as handing the keys of a house over to the new owner or handing off a financial portfolio. Certain steps must be adhered to and specific paperwork must be filed. Due to the complexities of inheritance property laws, it's best to obtain legal advice. Seek out lawyers who are well-versed in Inheritance Law.
If you are entitled to inheritance property, but it's tied up in probate, we have a solution for you. Instead of putting finances on hold, heirs are able to sell their inheritance for a lump sum cash payment through Simon Volkov.
If you are in need of cash for your inheritance, fill out our Inheritance Form. Upon receipt of your information, one of our Inheritance consultants will contact you within 48 hours. We look forward to working with you and assisting you through the process.
Published on March 07, 2008 at 07:20 AM | Comments: 19
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