Sydney has inherited her grandmother's estate worth approximately $4.5 million. She is worried about paying taxes on the estate and the inheritance. How will these taxes affect her new estate and inheritance?

Question

Business

Dillan Le

10 January, 18:30

Sydney has inherited her grandmother's estate worth approximately $4.5 million. She is worried about paying taxes on the estate and the inheritance. How will these taxes affect her new estate and inheritance?

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Answers (2)

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Whitney Lewis · Answer 1

She pays the inheritance tax, while the estate is responsible for the estate tax.

Explanation:

Inheritance tax is a form of tax that every beneficiary of an inherited estate must pay. Regardless of the situation and location of the inherited property, inheritance tax is calculated individually for different beneficiary.

The estate in which a particular property is located is responsible for the estate tax. This is calculated based on the value of the property and paid by the estate management for all properties within the estate before rents are remitted to the landlords.

Makai Bates · Answer 2

Depending on the state where she is and the laws of that state concerning taxing properties of deceased persons.

The federal government sometimes taxes the estates of deceased persons, California has eliminated inheritance taxes altogether.

Explanation:

Depending on the state where she is and the laws of that state concerning taxing properties of deceased persons.

The federal government sometimes taxes the estates of deceased persons, California has eliminated inheritance taxes altogether.