Is There a Federal Inheritance Tax in the United States?

There are terms that are used in the field of estate planning that can sound interchangeable, and this can lead people to misguided beliefs. This dynamic enters the equation when it comes to death taxes. You may assume that an inheritance tax and an estate tax are identical. The idea is that these are just two different terms that can be used to describe the same thing. If you are not an estate planning professional, this assumption may make sense, because they do sound quite similar. In reality, an estate tax and an inheritance tax are two entirely different forms of taxation. Inheritance Tax When you talk about taxes that can impact your estate, there are federal taxes, and there are also a state-level taxes in some states. On the federal level, there is no inheritance tax at all. This is a type of tax that would be imposed on transfers to each person who is receiving an inheritance who is not exempt from the tax.  As a result, there could be multiple different impositions of the t


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