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This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

Content is the opinion of the author and does not represent the position of any other person or entity. Information is from sources believed to be reliable but cannot be guaranteed.

The author is paid for product endorsements and has an ownership or other financial interest in the businesses related to the topics covered.

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Tax on inheritance

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If in doubt, please send a new question or ask for an update.

Q: Hello, can you tell me, do you have to pay taxes on inheritance? If so, do you know the percentage at which it is taxed?

A: Generally inheritances are not taxable to the recipient since the grantor's estate already paid any applicable taxes. The most notable exception is that if the money came from a qualified retirement plan, it is still considered taxable income to the beneficiary. You should have a tax professional take a look at the transactions to be certain. If you do not have a regular tax adviser, this OnlineAdviser service is available for a single hour review and consultation to address these tax concerns at minimal cost. Even if the inheritance is not taxed, it is possible that the inheritance might be put to use to reduce your own taxes and further improve your financial situation.

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