Inheiritance tax on 3 properties left by parents?
My brother and I inheirited 3 peices of property. 2 with houses, the other is 40 acres. Will has been probated, and now I am transfering deeds into our names. This issue of inheiritance tax has come up, and our attorney did not mention that at time of probate. What is inheiritance tax? Parents also left all cash monies to us as Pay on Death. Is this affected as well? Any help on this would be appreciated. I also live in Texas, if that makes a difference. Thanks Y’all!
No Federal Estate Tax is due if gross estate was less than 1 million if death was in 2005 or 2 million if death was in 2006. No TX inheritance taxes are due either. To prove this all real estate must be appraised as of death. These death values will also be your new cost basis for income tax purposes. So if not appraised yet go get it done but tell appraiser to value them as of death and not today.