Quote Originally Posted by TinCow View Post
This is completely incorrect. It would be correct if the estate tax applied to all estates, but it does not. Even when 2013 rolls around and the tax returns in full force, it will only apply to estates over $1m. If you stand to inherit over $1m, your family is not poor. The estate tax only impacts people who (1) grew up in highly privileged families and (2) did not work for the money they are about to receive. Even then, they will still inherit staggering sums of money. A don't have much sympathy for someone who's complaining because they only received $5.05m from their $10m inheritance. Those peoples' parents clearly did not instill in them a work ethic.
I am getting state inheritence taxes mixed up with the "death tax."

If inherited an estate worth 100k tomorrow, when I filed my state tax return I would owe 10% of the value. If I needed to liquidate some of the estate (to cover the taxes or for whatever reason) and I got a capital gain on its base cost, then I would also have to pay a capital gains tax on top of the 10%.

Each state is different, everyone may want to check their state

http://www.retirementliving.com/taxes-by-state


@Vuk: You are correct. I am a mind reader. Cookie please.