Inheritance Tax, Death Tax, Estate tax?

Question

I'm about to received some inheritance from my father, maybe around USD300k, here's the questions:

1) Is death tax same as estate tax?

2) Does my father has to pay any death or estate tax when he die, if he has less than 1 million worth of total asset.

3) Do i have to pay any inheritance tax if i inherit say USD300k? I research online that i'll have to pay tax on my father's IRA (Tax deffered). But are there inheritance tax on the money from the saving accounts and sale of house etc?

Answer 1

(1) Yes

(2) No federal estate tax, but there might be a state inheritance tax. Pennsylvania, for example, would subject your father's estate to taxation at rates ranging from 0% (for transfers to a spouse) to 15% (for transfers to non-lineal descendants).

(3) You wouldn't pay taxes on previously-taxed income, but you would be subject to tax on any retirement or pension assets.

Answer 2

Your research is correct regarding the IRAs. Any pre-tax investments are taxable to you. Other property is not other than any gain between the date of death and when you dispose of the property. If the estate is less than 2 Million there will be no estate tax and there is never any inheritance tax. If a house is involved be sure to get an appraisal as close as you can to the date of death as that will establish the basis in determining any tax that may be due upon sale.

Answer 3

The Death Tax has been repealed in 20 states. An estate tax or inheritance tax, which is different, still exists in most states. Your question clearly is a racial jab, but I addressed the death tax portion. I'm not touching the other part. That's simply stupid.