Death and Taxes
“What is the tax going to be on my inheritance?” I get this question a lot in my probate practice. What many beneficiaries don’t realize is that inherited funds are generally not considered income and will not need to be claimed as income on personal tax returns. (There are some very limited exceptions that have to deal with the form the inherited funds take.) In talking with my probate clients, it seems that most of them have heard of the estate tax, and are concerned about that. Texas does not have a state estate tax. The current federal estate tax exclusion amount is over $5 million, which means if the total value of all the assets of the deceased is less than $5 million, no federal estate tax is due either. Even some estates over the $5 million mark can avoid the estate tax with some careful estate planning. Each case is different, and any concerns should be discussed with an attorney individually.
This post is for informational purposes only. It is not intended to be and should not be relied upon as legal advice.