Anyone know about these state inheritance taxes.
Using an 11% tax a niece who inherits $100,000 over the small state exempt amount will owe $11,000.
Suppose the $100k consists of old savings bonds where principle is only $40k and interest is $60k. Will the niece still owe $11k or does the estate pay the taxes due on the $60k in interest (ie $15K) resulting in the niece inheriting $85k which 11% would be due on.
Or an IRA/401k where tax is due on the full amount lets use $300k.
Does the estate pay taxes on the $300k reducing the inherited amount to $225k that the 11% is due on? or tax the niece on the whole $300k.
Then some states also have an estate tax but I understand if the inheritance tax exceeds the estate tax no additional estate tax is due.
Any experiences or knowledge of this stuff?
Using an 11% tax a niece who inherits $100,000 over the small state exempt amount will owe $11,000.
Suppose the $100k consists of old savings bonds where principle is only $40k and interest is $60k. Will the niece still owe $11k or does the estate pay the taxes due on the $60k in interest (ie $15K) resulting in the niece inheriting $85k which 11% would be due on.
Or an IRA/401k where tax is due on the full amount lets use $300k.
Does the estate pay taxes on the $300k reducing the inherited amount to $225k that the 11% is due on? or tax the niece on the whole $300k.
Then some states also have an estate tax but I understand if the inheritance tax exceeds the estate tax no additional estate tax is due.
Any experiences or knowledge of this stuff?