What is Inheritance Tax?
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Inheritance tax is different from estate tax, though sometimes people confuse the terms.
Inheritance tax is a tax on the assets you receive as a beneficiary of someone else's estate. Whether there is in inheritance tax depends on where the person who left you the inheritance lives when they pass- it does not matter where you as the beneficiary live. Estate taxes, in contrast, are taxes paid by a decedent's estate based on the assets that are in their estate when they pass. Massachusetts does not have an inheritance tax, but it does have an estate tax. This means if you live in Massachusetts, your heirs will not pay inheritance taxes on what they receive, but your estate may owe estate taxes. If you receive an inheritance from someone who lived in a state that does have an inheritance tax, you may have to pay taxes on what you inherit. Learn more here about inheritance taxes. |
Need Help With Planning for Estate Taxes?OR
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