Inheritance Taxes Attorney in Cary, North Carolina
What Are Inheritance Taxes?
Some states also have inheritance taxes. This is like an estate tax but the tax is paid by the heir (beneficiary of the property or money). The tax amount is typically based on the amount inherited and closed related to the heir is to the deceased. The states that impose an inheritance tax does so if the deceased person lives in one of those states regardless of where the heir lives.
Thankfully North Carolina does not have an inheritance tax.
How to Avoid Inheritance Taxes?
Like estate taxes, the best way to avoid inheritance taxes is to live in North Carolina.
If you are a beneficiary of an estate, look up online whether the deceased person lived in a state who has an inheritance tax. Few states still have this tax, but it is best to do your research and know what's coming. Additionally, before you blow through an inheritance from someone who lived outside of North Carolina, make sure you know whether or not the inheritance tax was already paid or you need to pay it. This will avoid an awful surprise tax bill from a different state and your inability to pay it.