Does my wife have to pay any inheritance tax? 4 Answers as of September 21, 2011

My wife's parents ,who lived in Puerto Rico, passed away in the last year and their home recently sold. My wife's share of the sale proceeds and money from a savings account is approx. $ 35,000.00. Does she have to pay any inheritance tax on these proceeds?

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CVM Law Group, LLP
CVM Law Group, LLP | Jack S. Johal
California does not have an inheritance tax. Doesn't sound like her parents' estate was large enough to be subject to federal estate tax. You need to check with an attorney in Puerto Rico to determine if there is an inheritance tax in Puerto Rico.
Answer Applies to: California
Replied: 9/21/2011
Law Office of B. Keith Martin
Law Office of B. Keith Martin | B. Keith Martin
No, inheritance tax, if any, is owed by the estate of the decedent. The beneficiary of the gift never owes inheritance tax (to the state) or estate tax (to the IRS). Anyway, California repealed its inheritance tax years ago.
Answer Applies to: California
Replied: 9/20/2011
The Schreiber Law Firm
The Schreiber Law Firm | Jeffrey D. Schreiber
The deceased's estate pays inheritance taxes, not the heirs. Whether a tax is due depends on the size of the estate, and would be something dealt with by the executor of the estate.
Answer Applies to: California
Replied: 9/20/2011
Steven J. Fromm
Steven J. Fromm | Steven J. Fromm & Associates, P.C.
Generally there is no tax on inheritances. However, if the house was sold for more than its fair market value on the date of death there could be a capital gain. Also, any interest earned on the bank account would be taxable. A Form K-1 (1041) should indicate your taxable income and related items from the estate.
Answer Applies to: Pennsylvania
Replied: 9/20/2011
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