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Does your state have an inheritance tax?

Discussion in 'The Okie Corral' started by hammerkill, Mar 9, 2012.

  1. hammerkill

    hammerkill

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    I have a Relative that passed away last June in Pennsylvania. That place is a nightmare when it comes to inheritance. The tax is 15% plus every fee they can tack on. The Lawyer alone was $5400. It will take almost a year and it is a simple tax return, about 2 pages to release the estate. Contrast that with WV, no inheritance tax, 90 probate and done. Lawyer fees 500 bucks. They fleece you when you're alive then get one last lick in when you are dead.
     
  2. Unlocked

    Unlocked 4 8 15 16 23 42 CLM

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    Yes they do and it's absolutely criminal. I understand the the current Indiana legislature has enacted a "phase out" of the tax to wean the state off of the tax and replace it with other revenue. At least that's how it was explained to me by my state rep when I wrote them on the issue. To me it's just wrong to tax me my whole life six ways to Sunday and then everything I've purchased with my post tax dollars gets hit again upon my death. We should change the saying from death and taxes to death and even MORE taxes...
     

  3. Big Bird

    Big Bird NRA Life Member

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    Federal Estate Tax is currently only on estates $5 mil and above. It goes back to estates as little as $600k when the Bush tax cuts expire next year and starts at 38% and quickly goes to 45%. Its calculated on the entire value of the estate--clothes, jewelry, real-estate, cars, cash, investments, EVERYTHING you own. Its due IN CASH 9 months after you die. If you have $2 million worth of property (house, IRA, life insurance etc) and die Uncle will take about $500k of it! Tack on another $100k or so in some states. Plus if you have any IRAs/401Ks etc you will also have to pay the income tax due on that money. If you have a $200k IRA you will pay over $60k Federal income tax on it an perhaps another $10-20k State Income Tax and THEN if you are an estate tax candidate you could fork over another $40-50k to the Federal and State Estate tax leaving your heirs with maybe 35 cents on the dollar!

    But hey, the rich aren't paying their fair share...
     
    Last edited: Mar 9, 2012
  4. Dennis in MA

    Dennis in MA Get off my lawn

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    Usually, states that have people with $$$ have an estate tax. 18 jurisdictions (plus 7 more with an "inheritance tax") out of 51 have one at this time.

    Probate fees and lawyer fees aren't always tied to estate taxes.