Inheritance tax if not married?

Question

I live in Montana. If my significan other has me in her will to get the house upon her death what would the taxes be? House worth approx $180,000. We have 7 years living together so probably common law marriage.

Answer 1

The IRS does not tax the recipient of inheritance...ever. There is a federal tax on the estate (the net value of all assets left behind by the deceased), but the amount taxed is reduced by:

1) donations made to charity if stipulated in the will

2) the first $2,000,000 (for 2006, this changes year-to-year)

3) all amounts left to the spouse.

So if you are not married when your other dies, and if the amount of the estate is less than $2,000,000, and if your other never filed a form 709 "Gift Tax Return", there should be no estate taxes.

Answer 2

There is an exemption from federal estate tax in the amount of $2,000,000. I don't think there would be any federal estate tax even if you are not married unless there is a lot more assets than the house.
I'm not sure of Montana law. But my guess would be that there is no tax there or if there is one it would not be very much.