The death/inheritance tax hows that work?
930047
Inheritance Tax is the tax that is paid on your 'estate'. Broadly speaking this is everything you own at the time of your death, less what you owe. It’s also sometimes payable on assets you may have given away during your lifetime. Assets include things like property, possessions, money and investments.  Not everyone pays Inheritance Tax on death. It only applies if the taxable value of your estate when you die is above £285,000 (2006-2007 tax year) and is only payable on the excess above this threshold. (IT is 40% at present) There are also a number of exemptions which allow you to pass on amounts (during your lifetime or in your will) without any Inheritance Tax being due, for example:  if your estate passes to your husband, wife or civil partner and you are both domiciled in the UK there is no Inheritance Tax to pay even if it’s above the £285,000 threshold.  Most gifts made more than seven years before your death are exempt (certain other gifts, such as wedding gifts and gifts in anticipation of a civil partnership up to £5,000 - depending on the relationship between the giver and the recipient), gifts to charity, and £3,000 given away each year are also exempt.  More details regarding rates of tax, etc., are available on the website below.
638779
Pay on Death - it will pay to your beneficiary.
882667
It really depends on the laws of your state, but usually what happens when a person dies intestate is that the court appoints an executor who is responsible for liquidating all the assets of the decedent's estate.  Before any friend or family member gets any money or property out of the estate, the executor has to pay for any claims made against the estate.  As a result, whoever pays for the funeral and burial expenses can make a claim against the estate for reimbursement.  In this case, I would strongly advise you against getting involved if you're worried about how you'll be able to pay for it and whether your ex has enough assets to cover the burial/funeral expenses.  Doesn't matter if his brothers and sisters expect you to handle this or not -- you are under NO LEGAL OBLIGATION WHATSOEVER to stump up the cash for anything involving your ex.
837496
I say we keep it.  The estate tax only kicks in after a certain amount of money is involved.  Most of the arguments against it try to paint a picture of 'thanks to this darn estate tax, we can't keep the farm now that dad's passed away'.....this is totally incorrect and misleading.  The exemptions on the tax cover estates up to several million dollars- which safely covers most modest estates of hard working families.  \n\nWe're talking about millions and millions of dollars before the tax is enacted on a particular estate, leaving more than enough for any benefactors to live comfortably.\n\nSo some heiress only gets 20 million instead of 30......I'm crying for them- no, really.
801146
At the time that the estate of the decesased transfers title to the property to a beneficiary, the estate is deemed to have "sold" that property at its current fair market value. If the property was used as a principal residence by the deceased prior to his/her death, no income tax will be payable by the estate on the increase in value between the deemed selling price at death and the original cost of the property to the deceased. \n\nThe beneficiary of the estate is deemed to have acquired the property at its current fair market value (cost base) on the date that title to the property transferred to that beneficiary. If the beneficiary decides to sell the property immediately, the liklihood is that there will be little or no capital gain since the selling price will be very close to the beneficiary's cost base. To the extent that there is a gain it will be subject to income tax in the hands of the beneficiary. At the present 50% of the gain would be taxable.\n\nIf the beneficiary moved into the property and used it as a principal residence prior to selling it, tax may be avoided entirely on any capital gain realized on a subsequent sale. Care must be taken to ensure that the property is in fact the principal residence of the person making the subsequent sale. Needless to say,  the Canada Revenue Agency is cognisant of the fact that people do try and use the exemtion on sales of a personal residence as a tax doge in some circumstances and look carefully at these transactions which are a matter of public record.
403216
the executor of the estate is supposed to divie up the remains equally, i think; and that means for everything that is sold you get an equal share.  if they sold it, it doesnt matter if they already spent their portion of what they got, they still owe you your share.  you can sue them.  its a shame people act so selfishly and unethical towards each other when their parent dies.
1112274
Interhitance Taxes are somewhat obsolete although some states still have those kinds of taxes. If you are talking about the estate tax, the estate tax is deducted from the assets of the estate and then your inheritance is based on the residual value of the estate. \n\nIt is all based upon percentages and dollar values of the estate. For these kinds of problems contact a CPA or Title and Trust company in your area. \n\n\n\nIRS CIRCULAR 230 NOTICE:  To ensure compliance with requirements imposed by the IRS, we inform you that, unless specifically indicated otherwise, any tax advice contained in this communication (including any attachments) was not intended or \nwritten to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any tax-related matter addressed  herein.
797879
I edit my previous response because I asked my tax professor about this situation, and he said that the retention of the life estate on the part of the parents would indeed affect the basis price in the house -- but he said the matter was complicated and not something that we would cover this year in Federal Income Tax (I suppose it may come up again in Estate Planning: Practice).  So my original answer is pretty wrong.\n\n---\nOriginal answer follows:\n\nThe tax basis for the children would be the $300k that they paid as fair market value for the house.  You could view the life estate as something granted to the parents, but I don't believe it would have a tax impact on the parents or the children.  I think if you look at it from a policy perspective, if we were to have to consider the value of the life estate to the parents, we would have to consider an intangible item of indeterminate value, and it would be a tax nightmare to try to tax the parents on the value of the life estate, and to balance the value of the life estate against the basis for the purchasing children.\n\nIt seems in the problem, though, that the better solution would be to have the parents retain the house and then grant it to the children in their estate, as the children would get the "free" step-up in basis on death -- and then thereby the children would receive the property with the FMV as the current basis, regardless of the parent's basis.\n\nWe covered this stuff earlier in this semester in Federal Tax, and I don't recall there being any special situation where the value of the life estate had to be considered in the tax situation when computing basis.
688390
Death Grant\nDeath Grant is usually paid on the\ndeath of a person who has\ncontributed to the Social Security\nScheme. However under certain\ncircumstances a non-contributory\ngrant can be paid. Please refer to\nPart 5 for further information.\nFor a grant to be paid, certain\nconditions have to be met. These\nare set out in Part 3 of this leaflet.\nDeath Grant may also be paid on\nthe death of a person who was\nunder 21, and was in full-time\neducation or training, or was\ndisabled. Here it is paid on the\ncontribution record of a parent, or\nanother person who was wholly or\nmainly maintaining them at the time\nof their death.\nAmount of the grant\nThe amount is reviewed every year\non 1st October and is published in\nthe leaflet entitled, Contributions\nLevels and Benefit Rates (SSD31).\nPeople who can be paid a Death\nGrant\n• If the person who has died left a\nWill, or if letters of\nadministration are being taken\nout, the grant is usually paid to\nthe executors or administrators.\n• If there is no executor or\nadministrator, payment is made\nto the person responsible for the\nfuneral expenses.\n• If the person who is responsible\nfor funeral expenses receives a\nDeath Grant, he or she is\nentitled to recover from the\ndeceased person’s estate only\nthose funeral expenses not\ncovered by the Death Grant.\n• If there is no funeral or where,\nfor example, the cost is met by\none of the Services or a burial\nsociety, the grant can be paid to\nthe next of kin.\nHow and when to claim\nYou must claim within six months of\nthe date of death. Delay in claiming\ncould mean that the grant will be\nlost.\nIf you think you may be entitled to\nclaim, call into the Department\nbringing the following documents if\npossible.\n• the death certificate;\n• the deceased’s Social Security\nregistration card;\n• the deceased’s marriage\ncertificate, if the person was\nmarried;\n• any pension order books or\ncheques from the Department,\nor any other Social Security\nauthority, which relate to the\ndeceased;\n• the undertaker’s account or\nestimate if your claim is based\non, or will be based on funeral\nexpenses.\nPlease do not delay in claiming.\nEven if you do not have these\ndocuments, our staff will be glad\nto help you to fill in the claim\nform.\nIf you cannot call into the\nDepartment, write to the\nDepartment asking for a claim form.\nGive as much of the following\ninformation as you can:\n• your full name;\n• your address;\n• your Social Security number;\n• your relationship to the\ndeceased\nWe will also require similar\ninformation about the deceased:\n• full name;\n• last address;\n• Social Security number;\n• date of death\nThe decision on your claim\nIf you are not satisfied with the\ndecision, you may be able to\nchallenge it. We will explain your\nrights when we give you our\ndecision.\nHow Death Grant is paid\nThe usual method is by a cheque\nwhich must be passed through a\nbank account.\nPart Two\nClaiming and paying Death Grant\nO f f e r i n g S u p p o r t , O p p o r t u n i t y & S e r v i c e\nO f f e r i n g S u p p o r t , O p p o r t u n i t y & S e r v i c e\nClaims\nClaims can be based on the\ncontributions of the person who has\ndied. However it is also possible for\nthe claim to be based on the\ncontributions of a spouse.\nIn the case of a person who was\nover 16 but under 21, and in fulltime\neducation or training, we could\nuse the parent’s contributions. This\nwould apply to a person who was\nwholly or mainly maintaining the\ndeceased person when they died.\nIf the claim is based on the\ncontributions of the person who has\ndied, the relevant quarter is:\na) Two quarters before the quarter\nin which the person died; or\nb) two quarters before the quarter\nin which they reached pension\nage, if this is earlier than (a)\nIf the claim is based on the\ncontributions of some other person,\nthe ‘relevant quarter’ is:\na) Two quarters before the quarter\nin which the
246671
You are probably thinking of a reverse mortgage.  This is where a bank (or other financial institution) will pay a sum of money, either as a lump-sum or in monthly installments (or both), using your home as collateral for the loan.  Traditional it's a monthly amount and the phrase "reverse mortgage" comes from the fact that the mortgage principle is growing each month, not shrinking each month.\n\nUpon the death of the owner, the money owed is a debt of the estate and the proceeds of the estate will have to settle the debt.  The loan is protected by a lien on the home, but if the estate can pay the debt without selling the house, selling the house is optional.\n\nBe very careful with a reverse mortgage; there are instances where they make sense, but there are a lot of really bad deals, just barely above the scam level.  Perform solid due diligence on any company and contract prior to signing.\n\nGood luck.
535261
I'll try to remember. We have Value Added Tax, about 17.5% on certain goods and at a lower rate for gas (petrol) and electricity. Capital Gains Tax after an inheritance over a certain amount. Income Tax, comes out of your wages or your business profits. National Insurance paid out of your wages but your boss pays a larger amount than you, this pays for Welfare benefits and free hospital treatment. Council Tax for all local services Street cleaning, Road mending council house repairs, the police etc., Water rates which pay for your water supply, some areas like where I live in Eastbourne East Sussex have two lots, one for sewage and one for supply as we have different companies supplying both services. I'm not sure if there's an Inheritance Tax as well as the Capital Gains tax but there's also Stamp Duty which is paid during the act of buying a house and various Exises and Duties levied on goods brought into the countries at ports and airports.
241999
There is no death tax--that's just a propaganda term.  When the Progressives took over the country from the Robber Barons around the turn of the century, they believed that unchecked concentration of wealth in a few families was bad for society and the economy, so they instituted taxes on large estates.  Now the reactionaries running the country look fondly on the days of the Robber Barons and propose to abolish taxes on estates, moving billions of dollars of tax burden from a few thousand families to the middle class.  Bush and the Republican Party are more concerned about the Gates family accumulating more wealth than they are about millions of our children who will inherit the fiscal disaster we're leaving them.
574595
When someone dies intestate it can be a mess, particularly if there are children involved. In general, if there are children, the spouse is entitled by law to 33% of the proceeds, while the children can claim the remaining 66%. However it all depends on the situation. The link below provides more information.
1164963
My husband died unexpectedly 3 weeks ago, without a will. I realize this is a brother but it works the same way.\n\nYou need to go to surrogate court.\n Fill out the form for a executor for small estate (as long as the estate is under $20,000).\n You must list all his assets, property and debts. \nThe filing fee is $1.\n In about 2 weeks (for me) you will get a official copy stating you are the executor of the estate. \nYou must liquefy all assets, pay off all debts starting with his funeral expenses. \nOnce that is paid, you pay off any credit cards or bills he has. After that is done, the remaining monies are distributed to his heirs. \n\nSurrogate court will be very happy to answer any of your questions but...they will not give out legal advice.
613422
The law setting out who gets what is called intestate succession.  Each state has a statute that sets this out.  The statutes differ from one another in some respects.\n\nIn general: \n1.  Property that was held in some form of "pay on death" title will go to the surviving co-owner.  Typical of these are: beneficiaries to life insurance, persons holding property as "joint tenants", the beneficiary of a trust account at a bank or savings and loan.\n2.  In a community property state the surviving spouse receives all of the community property.\n3.  In a non-community property state or as to non-community property in a community property state the surviving spouse gets all if the deceased has no living descendants.  If there is one child (or the issue of the deceased only child) the child and the spouse split 50:50.  If there is more than one child, the spouse and the children split 1/3rd for the spouse, 2/3rds for the children.  \n4.  The  only time the state gets the estate is if there is no will and there are no known relatives.
523260
If you are the receiver of the inheritance, the tax has already been paid by the estate.  The money you received is tax-free.  My condolences on your lose.
849144
The following web site will tell you something about New Jersey estate tax.  As you will not none of the decedent's property can be transferred without dealing with the estate tax issue.  Your relative may have had an executor that would have handled all of this but we are just guessing without more information.  If you are attempting to deal with these issues for the estate I would suggest that you get some professional help.\n\nhttp://www.nj.gov/treasury/taxation/index.html?estatetax.htm~mainFrame