If I’m about to inherit $100,000 total inheritance is $42,5000 split 4 ways, do I have to pay taxes on this money?
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If I’m about to inherit $100,000 total inheritance is $42,5000 split 4 ways, do I have to pay taxes on this money?
Asked on October 23, 2012 under Estate Planning, Georgia
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
I am so sorry for your loss. As per the Georgia Department of Revenue: Georgia has an estate tax for estates of decedents with a date of death before January 1, 2005 which is based on federal estate tax law. Georgia has no inheritance tax, but some people refer to estate tax as inheritance tax. The tax is paid by the estate before any assets are distributed to heirs. It is not paid by the person inheriting the assets. Georgia 's estate tax is based on the amount allowable as a credit for state death taxes on the federal estate tax return (Form 706). Use the tax table in the federal instructions to compute the credit. The amount paid to Georgia is a direct credit against the federal estate tax. Although this tax was supposed to come back in 2011 it does not appear that it has. If your loved one just recently died then there is no tax at all at the present time: estate or inheritance. Good luck.
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