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If you inherit stocks, cash, or small amounts of other assets, unless they add up to $13.61 million in 2024, you probably wont have to pay the estate tax. Plus, that exemption is per person, so a married couple could double it. The IRS taxes estates above that threshold at rates of up to 40%.
Probably not. The IRS exempts estates of less than $13.61 million from the tax in 2024 ($12.92 million in 2023), so few people actually end up paying it.
This threshold gradually rises every year to account for inflation over time. As of 2023, your estate is required to pay the federal estate tax if the value of your taxable estate exceeds $12.92 million and increases to $13,610,000 for 2024.
If the estate generated over $600 in income after your loved ones passing and before the estate is settled, youll also be required to file an estate income tax return. Many estates of this size generate at least some income from interest, dividends or other sources.
The includible property may consist of cash and securities, real estate, insurance, trusts, annuities, business interests and other assets. Once you have accounted for the Gross Estate, certain deductions (and in special circumstances, reductions to value) are allowed in arriving at your Taxable Estate.
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Estate and inheritance taxes are taxes levied on the transfer of property at death. An estate tax is levied on the estate of the deceased while an inheritance tax is levied on the heirs of the deceased.
What Is the Estate Tax Exemption? The federal estate tax exclusion exempts from the value of an estate up to $13.61 million in 2024, up from $12.92 million in 2023.
The personal representative of an estate is an executor, administrator, or anyone else in charge of the decedents property. The personal representative is responsible for filing any final individual income tax return(s) and the estate tax return of the decedent when due.

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