Q:

What is the federal tax imposed on inheritance?

A:

Quick Answer

In 2013, the inheritance tax was increased from 35 to 40 percent by the American Taxpayer Relief Act of 2012, states Money-Zine. This amount is affected by inflation and rises accordingly, explains Money-Zine.

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Full Answer

The Internal Revenue Service, or IRS, states that estate filing is required, and an inheritance tax typically applies if the net worth of the estate is more than $5,430,000, assuming the deceased passed away in 2015. In 2014, estate filing is required if the net worth of the estate is more than $5,340,000, explains the IRS. Some of this tax can be offset using the lifetime credit, which has affected all gifts and estates received since 1977, notes Money-Zine.

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