This came up in a recent conversation and there seems to be some confusion and misperception about the "Inheritance Tax." It is actually an Estate Tax.
Most people seem to believe that your taxes are paid on what you inherit. However, it is actually a tax on the Total Value of the Estate. So, for instance, under the current law, if the total value of the estate is $100,000,000, the first $5,000,000 is not taxed, but the remaining $95,000,000 is taxed at the highest current rate (Federal, State and/or Local).
Since the tax laws are always changing, please do not take this information as Gospel and confer with a qualified CPA.
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