Inheritance Tax can be somewhat confusing if you are not familiar with all of the rules that must be followed. Inheritance Tax in some states is also known as Estate Tax.

 

Both of these are the tax that must be paid on the total value of someone’s property and money that has passed away. There are many things that can be done ahead of time that can lessen the amount of tax that may be owed.

 

Trying to figure out the amount of tax that will be owed depends on two different things:

 

  • The total value of the estate.
  • Any arrangements that were made before the time of death.

There are many common questions involved when learning more about inheritance tax. Some of the most common questions you may have are:

 

  1. What happens if I am married, who will pay the tax then?
  2. What is included in the total value of my estate?
  3. Is my life insurance taxable under inheritance tax?
  4. How can I avoid paying inheritance tax?
  5. What tax forms do I need to use in this situation?
  6. Do I have to pay all the tax at once?
  7. Can I gift all my assets to avoid the inheritance tax?
  8. Does it matter what state I live in?

These are all questions that have many answers that can be found at TurboTax Online They offer free live advice to answer all of your tax related questions. They also offer free, easy to use tax calculators that can help when it comes to paying inheritance or estate tax

Your estate consists of the value of your home and any other properties you may own (holiday home or buy-to-let properties), your cars, and other assets, investments, savings and insurances that pay out upon your death. These are then reduced by your debts and liabilities (e.g.  mortgage owings, loan and credit card debts, and funeral costs), to give the net value of your estate.