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Subject:  Re: Inheritance Taxes Date:  4/5/2013  9:41 PM
Author:  irasmilo Number:  118303 of 132200

You pay inheritance tax amounts over 5 and a half million.

I have no idea how you found a 16 year old thread to reply to, but your answer is wrong. Federal Estate Tax kicks in at 5.5million combined lifetime taxable gifts and Estate value. Inheritance taxes are state imposed taxes which are separate from Estate taxes. Both state-level estate taxes and inheritance taxes often kick in at lower amounts ($675K in NJ for Estate Tax, $500 (yes, $500) in NJ for inheritances distributed to Class D beneficiaries [generally no familial relation to the decedent])

Simply put, estate taxes are levied on the value of an estate. Inheritance taxes are levied on the transfe of assets from an estate to certain classes of beneficiaries.

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