Do I have to pay any inheritance taxes to the federal government or New York state?
Do I have to pay any inheritance taxes to the federal government or New York state? I am SS and I also want to know how this will effect my 2011 taxes
There is no federal inheritance tax. There is a federal estate tax that the executor of the estate must pay before distributing the bequests to the beneficiaries. However, in 2011 and 2012, the federal estate tax exemption is $5,000,000 for each individual. As long as a person's taxable estate is $5,000,000 or less, their estate does not have to pay federal taxes. In New York, there are no inheritance taxes. However, the state estate tax exemption is $1,000,000. So if someone dies with a taxable estate over $1,000,000, the executor is responsible for paying taxes from the estate. Therefore, your inheritance will have no impact on your personal taxes for 2011.
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